Switching from UK GAAP unlikely to boost hedge fund profits

As the old UK GAAP phases out, accountants warn that switching systems will yield little in profits or tax relief for most hedge funds

As an old accountancy system phases out, UK hedge fund managers now face a choice between two systems: the revised UK Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).

Those hoping that one system will inflate their profits and diminish their tax liabilities – and having paid a consultant a big sum to tell them this – will probably be disappointed. "For the majority it won't make much of an impact," says Matthew Crisp, London-based partner at