) WHICH POLICY REGARDING INPUT DATA IS LEAST LIKELY COMPLIANT WITH THE GIPS STANDARDS

2.) Which policy regarding input data is least likely compliant with the GIPS standards?

A.

Policy 2

B.

Policy 3

C.

Policy 1

Answer = A

The GIPS standards require all transactions to be recognized on the trade date and not

the settlement date. Trade date is when the transaction takes place, whereas

settlement date is when the exchange of cash, securities, and paperwork involved in a

transaction is completed.

“Overview of the Global Investment Performance Standards,” by Phillip Lawton