I have just faced the following question in the mock exam:
Which of the following is most likely required to comply with the GIPS standards regarding input data? Portfolio valuations must:
be obtained from independent third parties
use fair value for periods on or after 1 January 2015.
use accrual accounting for all interest-earning investments.
I am fully confused as the question relies on the knowledge from optional segment. How it could be???
Is the mock exam from the CFAI or from some third party? I would guess it is just an oversight on their part and would go ahead and ignore it.
I haven’t done my revision on GIPS yet but i would use elimination to GUESS the answer. I also skipped that optional part. There is something about fair value on or after 1 January 2011(The part for provisions of the GIPS standards(an overview) is NOT optional).So i would eliminate the second one which says 1 January 2015. The first choice doesn’t sound right-input data from third parties? Which leaves me with the third choice.
They say its optional then they test it? Its not fair.