skycfa

at least in the summary of GIPS pg 350 CFAI book it says "accrual accounting must be used for all assets that accrue interest income, and for periods beginning 1/1/05, trade date accounting must be used".

was the schweser thing something not INTEREST income related? if so, sneaky, but that is the wording of GIPS anyways. interest income = FI and equity.

I am starting to hate studying.

nannan66

Here's the quote from Schweser:

"all composites will have the same beginning and ending annual dates. We will apply accrual acouting to all interest generated by the bonds in our portfolios. Starting in 2010 we will cal ulate time weighted returns on the date if all large external cash flows. All discretionary, fee paying portfolios will be included in at least one composite and composites will be defined according to invest strategy and or objectives."

I said this was inaccurate because all fixed income AND equity use accrual accounting. Am I missing something here?

justin88

That's what I thought. Anyone reading this do Schweser Volume 2, Exam 1AM, Question 4, Statement 1?

I said inaccurate for the very reason mentioned above...



Edited 1 time(s). Last edit at Saturday, May 7, 2011 at 07:56PM by jdane416.