Q & A Database

The GIPS Standards Q&A database contains questions and answers (Q&As) on various searchable topics that provide additional interpretation on an issue. Q&As are considered to be authoritative guidance and must be followed in order to claim compliance with the GIPS standards.

Content from prior Q&As was included in the GIPS Standards Handbook as much as possible and many Q&As were archived. Change the Status drop-down filter to "Archived" to see the archived Q&As.

The GIPS Standards Helpdesk is available for individual questions and typically responds to inquiries within 3 business days.

Search by category, status, date range, and/or keyword.

to
1 Result

  • Current

    Effective: 1 January, 2020
    Categories: Performance Examinations
    Source: 2020 GIPS Standards

    How does a performance examination differ from a verification?

    For a firm, verification is a process by which a verifier assesses whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation and distribution of GIPS Reports, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

    A performance examination tests, for a specific composite, whether 1) the firm has constructed the composite and calculated the composite performance in compliance with the GIPS standards, and 2) whether the firm has prepared and presented the GIPS Composite Report in compliance with the GIPS standards. 

    A performance examination tests, for a specific pooled fund, whether 1) the firm has calculated the pooled fund performance in compliance with the GIPS standards, and 2) whether the firm has prepared and presented the GIPS Pooled Fund Report in compliance with the GIPS standards.

    A performance examination includes testing of a specific composite or pooled fund to ensure the firm has implemented its policies and procedures to comply with the composite construction, calculation and presentation requirements of the GIPS standards for a specific composite or pooled fund.  

    For example, when conducting a verification, the verifier must perform sufficient procedures to determine that portfolio holdings, income, and cash flows are supported by appropriate documents from independent third parties, if applicable.  Verifiers may use a sampling methodology when performing such procedures. The selected sample of portfolios may or may not include portfolios from all of the firm’s composites, and may or may not include all of the firm’s pooled funds. When conducting performance examination procedures for a specific composite, the verifier must subject the entire composite to testing when conducting performance examination procedures, for the entire period covered by the performance examination.  The verifier may select a  sample of portfolios in the specified composite. When conducting performance examination procedures for a specific pooled fund, the verifier must subject the entire pooled fund track record covered by the performance examination to testing.  For the portfolios selected from the examined composite or for the examined pooled fund, the verifier must perform sufficient procedures to determine that portfolio holdings, income, and cash flows are supported by appropriate documents from independent third parties, if applicable. A performance examination may only be performed either concurrently with, or subsequent to the completion of, a verification.

    Asset owners may also choose to have a performance examination for any total fund or composite.

    Please also see the prior version