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.

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1 Result
  • Archived

    Effective: 1 January, 2014 - 31 December, 2019
    Categories: Trade-Date Accounting
    Source: GIPS Executive Committee

    What does “trade-date accounting” mean?

    The GIPS standards require that “for periods beginning on or after 1 January 2005, firms must use trade-date accounting.” Trade-date accounting determines the correct economic value of the portfolio assets as of the transaction date by recognizing the asset or liability on the date of the purchase or sale and not on the settlement date. Recognizing the asset or liability within three days of the date the transaction was entered into (trade date, T+1, T+2, or T+3) satisfies the trade-date accounting requirement for the purposes of the GIPS standards. Firms must not use settlement-date accounting for periods beginning on or after 1 January 2005.

    Please also see original Q&A