Firms with Records or Performance Calculations: Compliance with AIMR-PPS Standards |

Firms with Records or Performance Calculations |

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Question

Firms with records or performance calculations for periods prior to the effective dates for AIMR-PPS compliance can still claim compliance with the PPS using which of the following methods?

I. Restate all of its performance numbers in accordance with the standards.

II. Continue to use the non-conforming performance measures with specific disclosures about how the measures are not in compliance.

III. Use the relaxed standards of AIMR designed specifically for this situation.

Answers

Explanations

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A. B. C. D.

A

All three are acceptable ways in which firms with records or performance calculations for periods prior to the effective dates for AIMR-PPS compliance can continue to claim compliance with the PPS. This is known as "Retroactive Compliance."

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