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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Archived

Effective: 1 November, 2012 - 31 December, 2019

Categories: Valuation

Source: GIPS Handbook, 3rd Edition

Firm A has been in existence since 1995. The firm has calculated its performance using quarterly valuations of portfolios. In January 2002, the firm seeks to show history since its inception that meets the requirements of the GIPS standards. Does it have to recreate its performance history because it does not meet the monthly valuation requirement?

Assuming it has satisfied all the other requirements, it can show its history from 1995 through 2000 using its original performance calculations for its portfolios valued on a quarterly basis. However, to claim compliance with the GIPS standards, the firm is required to use monthly valuations for periods beginning on or after 1 January 2001. Therefore, to claim compliance, Firm A must value its portfolios on at least a monthly basis and recalculate the performance for all periods beginning on or after 1 January 2001.

Please also see original Q&A