Investment Accounting

Front / middle office: real-time / intra-day portfolio, valuations, cash flows, risk, exposure, trading decisions
IBOR prioritizes operational and investment decision-making (unlike ABOR's accounting focus) with "as-known" historical views, supporting multi-book setups (e.g., for different currencies or regulations).

Back-office accounting, regulatory / statutory reporting, audit, NAV, tax, financial statements

Timing / latency: IBOR aims for near-real-time or intra-day updates; ABOR is more “after the fact” as accounting entries become validated and posted.
Views / flexibility: IBOR often supports multiple position “views” (e.g. including pending orders, accruals, forward projections) depending on the user (portfolio manager, risk system, compliance).
Completeness vs flexibility: ABOR must be fully complete (i.e. all accounting transactions must be included) to support statutory reporting. IBOR is more flexible / “user-centric,” possibly excluding certain entries or only capturing what matters for investment decisions.
Reconciliation & alignment: Because they’re serving different purposes, there will always be reconciliation between IBOR and ABOR, and differences in “views” may cause mismatches that need resolving.

It represents the total value of a fund’s assets minus its liabilities — essentially, what one share/unit of the fund is worth.
- Assets: Stocks, bonds, cash, etc.
- Liabilities: Fees, payables, accrued expenses
NAV = (Total Assets − Total Liabilities) / Number of Shares or Units

Accruals are revenues or expenses that have been earned or incurred but not yet received or paid in cash.
They ensure that accounting reflects economic reality, not just cash movement.
This is part of the accrual basis of accounting, which recognizes transactions when they occur, not when the money moves.
When calculating a fund’s NAV, accruals are used to recognize interest, dividends, fees, and expenses that have built up over time but haven’t been settled yet.

A secondary, automated "shadow" NAV calculation system that runs in parallel to the primary NAV (often ABOR-based). It acts as a backup to ensure business continuity during disruptions, such as cyber incidents, by providing low-touch, fully reconciled valuations.
NAV Contingency: A broader disaster recovery framework for NAV processes, integrating CNAV as a redundant layer. It protects critical data and valuations with high-availability architecture, ensuring near-real-time recovery and compliance even if the main system fails.
Note: CNAV = Constant NAV is another concept that is often associated with money market funds that aim to maintain a stable NAV (e.g., $1.00 per share).

The master accounting system that records all of a company’s (or fund administrator’s) financial transactions in a structured way.
Think of it as the final, official accounting book used for:
- Financial statements
- Audits
- Tax filings
- Regulatory reporting

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