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 May, 2010 - 31 December, 2019Categories: ValuationSource: GIPS Executive Committee
The 2010 edition of the GIPS standards requires a firm to value portfolios no more frequently than required by the composite-specific valuation policy. What does this mean?
A firm must not value a portfolio “opportunistically” and must follow the composite-specific valuation policy consistently. For example, assume the valuation policy is to value portfolios for large cash flows, which are defined in the composite-specific valuation policy as cash flows equal to or greater than 5% of the beginning of month value of the portfolio. For any cash flow that is less than 5% of the beginning of month value of the portfolio, the firm must not value the portfolio. For any cash flow that is equal to or greater than 5% of the beginning of month value of the portfolio, the firm must value the portfolio. The firm must apply the composite-specific valuation policy consistently and not “cherry-pick” when to value portfolios.