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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Effective

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1 Result

Archived

Effective: 1 December, 2006 - 31 December, 2019

Categories: Definition of the Firm

Source: GIPS Executive Committee

Firm A changed its legal status from a partnership to a corporation. Does the changed legal status automatically mean a new firm is created? If so, as of what date should the new firm start reporting performance?

A change in legal status typically will not result in the creation of a new firm for purposes of compliance with the GIPS standards. If the definition of the firm for Firm A remains unchanged, Firm A’s historical composite performance must remain unchanged. If, however, the change in legal status results in a change in the firm definition for Firm A, the firm must disclose the date of, description of, and reason for the redefinition. If it is determined that the change in legal status results in the creation of a new firm, the new firm must determine if there is a continuation from the prior firm or if the restructuring is so substantial that it is essentially a new firm. A simple change in legal status is not sufficient reason to redefine the firm and restart the performance record. In some cases, a firm definition may change without the firm losing its performance history. Please refer to the Guidance Statement on Performance Record Portability.

Please also see original Q&A