GIPS

[derswap07]

Hi All,
CFAI Topic exam for GIPS - Katherine Ng Q 3:
[question removed by moderator]
My confusion is that they have allocated cash to the carve-out, so why it is wrong? Also, The % of carve out is not to be reported?

 

[sunseeker]

Because they allocate cash to carve out from the same cash balance. Cash balance referring to carve out has to be handled fully separately from the rest of the composite I’d say.
Hope it helps,

 

[ludingduo]

Thank you so much!

 

[sunseeker]

You’re welcome