GIPS Question on Trade settlement accounting, taking

zbird2134

I stumbled upon a GIPS Trivia which I know everyone taking L3 loves to play
Is Trade Date account or settlement date accounting the preferred method.
Also, is this any requirement or is this a recommendation
Thanks

ShooterMcCFA

back the bus up.
as a correct answer? or as an option?
there is nothing on p 263 of CFAI text on GIPS that talks about illiquid securities.

mamuka12

Trade date. requirement. reason being, that several days can lapse between trade and settle and this can carry into a different reporting period reducing the accuracy of performance, therefore in the spirit of the standards, trade date is required