Schweser Study Session 18, Question 3

This relates to question 3 on page 228 in SS 18 in Schweser. They claim that Action 3 is in compliance with GIPS - accrued interest for the period only needs to be included in the numerator for fixed income return calculations. so effectively: (ending price + ending accrued interest) / (beginning price) -1 On page 181, they state that accrued interest must be accounted for in both beginning and ending portfolio valuations, which would actually mean: (ending price + ending accrued interest) / (beginning price + beginning accrued interest) -1 Page 181 is consistent with my experiences, and seems more logical. Seems like there’s an inconsistency. Am I missing something? Am I being stupid?

Action 3: “Accrued income FOR THE PERIOD was included in the numerator” is correct. Beginning price only includes Accrued income FOR THE LAST PERIOD

Ohhhhhh, I get you. Thanks!