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.

The GIPS Standards Helpdesk is available for individual questions and typically responds to inquiries within 3 business days.

Search by category, status, date range, and/or keyword.

1 Result
  • Archived

    Effective: 1 January, 2007 - 30 November, 2013
    Categories: Leverage/Derivatives
    Source: GIPS Executive Committee

    Do the GIPS standards include an example of how to value a portfolio that includes margin borrowing?

    Portfolio consists of $100 long stocks and additional $50 long stocks bought on margin. Valuation of long stocks and the long stocks bought on margin is $170 at the end of the period. Interest paid for margin borrowing is $0.20. Value of the portfolio that belongs to client at the beginning of the period is $100 (= $150 -$50). It becomes $119.80 (= $170 – $50 – $0.20) at the end of the period.

    R = {(119.8 – 100)/ 100}= 19.8%

    Please also see updated Q&A