|
LOS k: State the requirements and recommendations of the GIPS standards with respect to disclosures, including fees; the use of leverage and derivatives; conformity with local laws and regulations that conflict with the GIPS standards; and non-compliant performance records.
Q1. LeReaux Investment Management has created the performance presentation shown below. LeReaux, in existence since 1993, believes its presentation complies with the Global Investment Performance Standards (GIPS).
|
LeReaux Investment Management, Incorporated
Equity Composite
January 1, 2001, through December 31, 2005 |
|
Year |
Total
Return (%) |
Number
of Portfolios |
Composite
Dispersion (%) |
Total Assets
at End of Period |
Percentage of
Firm Assets |
Total Firm
Assets |
|
2002 |
7.2 |
24 |
3.0 |
187 |
46 |
407 |
|
2003 |
4.3 |
33 |
4.4 |
222 |
56 |
396 |
|
2004 |
12.1 |
51 |
1.2 |
289 |
64 |
452 |
|
2005 |
14.5 |
65 |
2.9 |
355 |
62 |
572 |
|
LeReaux has performed all calculations in this presentation in accordance with the Global Investment Performance Standards (GIPS). |
Which of the following is NOT an error or omission in LeReaux’s presentation that renders it non-compliant with GIPS? GIPS requires firms to:
A) disclose whether performance results are calculated gross or net of fees.
B) present five years of compliant performance.
C) disclose whether accrual accounting was used for dividends.
Q2. With respect to reporting a composite’s creation date and any changes in a composite’s name, which is a requirement of GIPS?
A) The creation date but not changes in a composite’s name.
B) Changes in a composite’s name but not its creation date.
C) Both the creation date and any changes in a composite’s name.
Q3. With respect to fees and to reporting returns under GIPS, firms:
A) must report returns gross of fees and never net of fees.
B) can report returns either net of fees or gross of fees.
C) must report returns net of fees and never gross of fees.
Q4. Of the following, with respect to GIPS, the one that is not a requirement and is only a recommendation is:
A) a list of other firms contained within a parent company.
B) how the firm defines itself to determine the total assets.
C) a list of any composites that have been discontinued within the last five years. | 
发表于 2009-4-10 16:07
| 
