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
  • Current

    Effective: 1 July, 2021
    Categories: Currency
    Source: GIPS Standards Technical Committee

    My firm is in the process of coming into compliance with the GIPS standards, and we are located in a country that converted to the euro on 1 January 2014. We have a historical track record going back to 1995, and we plan to claim compliance with the GIPS standards as of the firm’s inception date on 1 June 1995. The euro did not exist until 1 January 1999. How can we present performance since 1995 in euros given the currency change?

    All information in a GIPS Report that is required or recommended must be presented in the same currency. There is an exemption from this requirement when a country converts its currency to a different currency.

    In the case of a 1 January 2014 euro conversion date (ECD), the firm will have performance in euros for periods beginning on or after 1 January 2014. Performance prior to ECD must be treated as follows.

    Before ECD but after the euro came into existence (in this example, 1 January 1999–31 December 2013): The firm will have performance in the local currency and will have the appropriate exchange rates to convert it to the euro. The firm would thus present the performance before ECD but after the euro came into existence in euros.

    Prior to creation of the euro (1 June 1995–31 December 1998): The firm will have performance in the local currency, but because the euro did not exist as a currency until 1 January 1999, it is impossible to create historical performance in euros prior to 1 January 1999. For these periods, performance must be presented in the local currency.

    Performance for periods prior to 1 January 1999 may be linked to the euro performance starting 1 January 1999. When performance is presented in a different currency prior to the ECD, the firm must disclose:

    • the original currency of the historical data, and
    • which currency is being used for which periods.

    The following are examples of wording that may be used when a firm links a return from the local currency to the euro:

    • “French francs converted to euro at the fixed conversion rate,” or
    • The International Organisation for Standardisation (ISO) endorsed currency abbreviations, such as “<<FRF(EUR)>>” or “<<GRD(EUR)>>”