CFA Institute performance presentation standards require
A) semi-annual valuation.
B) accrual accounting for fixed income securities.
C) the estimation of future dividends.
D) the exclusion of unrealized gains from calculations.

Question

Quizplus · Accepted Answer

The CFA Institute's performance presentation standards require the use of accrual accounting for fixed-income securities to accurately reflect the income generated from these investments over time. This method accounts for interest income as it is earned, rather than when it is received, providing a more accurate picture of investment performance. The standards do not mandate semi-annual valuation, the estimation of future dividends, or the exclusion of unrealized gains from calculations.

CFA Institute Performance Presentation Standards Require