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 April, 2013 - 31 December, 2019Categories: Effective DatesSource: GIPS Executive Committee
The 2010 edition of the GIPS standards specifies that, for periods beginning on or after 1 January 2011, all portfolios must be valued in accordance with the definition of fair value and the GIPS Valuation Principles in Chapter II. Prior to 1 January 2011, portfolio valuations based on market value were required. For a firm that has not previously claimed compliance with the GIPS standards, for periods prior to 1 January 2011 can the firm value portfolios using fair values prior to 1 January 2011 or must the firm value portfolios based on market value?
A firm that first claims compliance with the GIPS standards on or after 1 January 2011 must value portfolios based on fair values beginning 1 January 2011 but, prior to that date, may choose to value portfolios based on market values or fair values. In order to utilize fair values prior to 1 January 2011, the firm must have implemented policies and procedures for valuing portfolios in accordance with the definition of fair value and the GIPS Valuation Principles for the applicable time periods.
Firms must not opportunistically switch between the use of fair values and market values and must consistently apply the adopted valuation policy for the respective period. The firm must document its valuation policy in its policies and procedures, including recording the timing of any changes to the policy.