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 March, 2006 - 31 October, 2012

Categories: Disclosures

Source: GIPS Handbook, 2nd Edition

Firm A presents its performance history since its inception in 1990 and claims compliance with the GIPS standards. The performance record since 1996 adheres to requirements of the GIPS standards. However, the firm did not include accrued income in the return calculation for the period from 1990-1995. What disclosure is necessary to allow the firm to link its pre-1996 non-compliant history with the ongoing compliant history?

Sample disclosure: “Performance results prior to 1 January 1996 are not in compliance with the GIPS standards as the firm did not include accrued income for fixed-income instruments when calculating the composite’s constituent portfolios’ returns.”

Firm A must disclose on its composite presentation that the performance record from 1990–1995 is not in compliance because accrued income was not included for fixed income instruments when calculating the composite’s constituent portfolios’ returns. This disclosure allows potential clients to determine whether the firm’s performance results from 1990–1995 are representative and whether the results are comparable to the performance of other firms that included accrued income during the same period.

Please also see updated Q&A