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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ArchivedEffective: 1 December, 2013 - 31 December, 2019Categories: Cash FlowSource: GIPS Executive Committee
Please provide clarification concerning what is and is not considered external cash flow.
When considering a portfolio, an external cash flow is capital (cash or investments) that enters or exits a portfolio. Expense payments are also considered external cash flows. Income receipts are not external cash flows. The “external cash flow” may be defined by the firm as a single flow or an aggregate of a number of flows within a stated period of time. When considering sub-portfolios of a multiple asset portfolio, a manager-directed reallocation of assets between segments could also be considered an external cash flow for that segment.