Author Archives: kmco

Kreischer Miller Exhibiting at 2019 CFA Institute GIPS Standards Conference

23rd Annual CFA Institute GIPS Standards Conference

September 11-12, 2019
Fairmont Scottsdale Princess
Scottsdale, AZ

The 2020 edition of the Global Investment Performance Standards (GIPS) was issued on 30 June 2019. Subject experts will address the key points you need to know to comply with, or continue to comply with, the GIPS standards. Asset allocators, regulatory experts, and compliance consultants will also address critical issues and major developments in their fields. This conference is essential for any performance or compliance professional.

Kreischer Miller will once again be exhibiting at this year’s GIPS Standards Conference. Stop by and see us!

More details about the CFA Institute GIPS Standards Conference.

Webinar: The Top 5 Things You Need to Know About GIPS 2020…and More

Thursday, September 5, 2019
11:00 AM – 12:00 PM

 

On June 30, 2019, the CFA Institute released the 2020 version of GIPS. GIPS 2020 has introduced numerous changes to improve the standards, ease the burden of compliance, and make the process more relevant for many firms in the investment industry. These changes are significant. If you currently claim compliance or are thinking about becoming compliant, you will be impacted by the new standards.

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Kreischer Miller Exhibiting at PMAR XVII

The Journal of Performance Measurement’s 17th Annual Performance Measurement, Attribution & Risk Conference
PMAR XVII

May 14-15, 2019
Westin Philadelphia
Philadelphia, PA

Each year, the PMAR conference provides an opportunity for performance measurement professionals to learn about recent developments in performance, attribution, risk, and GIPS, as well as network with peers and gain new insights and solutions.

Kreischer Miller will once again be exhibiting at this year’s PMAR Conference. Stop by and see us!

More details about PMAR XVII.

 

Kreischer Miller’s Thomas Peters Presenting at CFA Society Boston’s GIPS Standards Workshop/Roundtable

CFA Society Boston
The 2020 Edition of the GIPS Standards Workshop/Roundtable

October 23, 2018
Wells Fargo Meeting Center
Boston, MA

The 2020 edition of the GIPS standards was recently released for public comment through the end of this year. Attendees will have the opportunity to learn why the GIPS standards are being updated and the significant proposed changes including those that have been proposed to meet the needs of alternative investment managers, managers of pooled funds and asset owners. Attendees will be able to ask questions about the exposure draft and express their views on the proposal.

Kreischer Miller’s Thomas Peters, who is a member of the GIPS Executive Committee, will be a speaker at this event.

More details about the conference.

 

Kreischer Miller’s Thomas Peters Presenting at TAIA Institutional Investor Workshop

Texas Alternative Investments Association
2018 Annual Austin Institutional Investor Workshop

October 4, 2018
Hilton Austin Downtown
Austin, TX

This inaugural Institutional Investor Workshop will feature sessions on topics including investment structures, simplifying the RFP process, strategic partnerships, managing capital internally, PE fund winddowns, operational due diligence, performance reporting, investment transparency, good governance in fees and expenses, and tax and jurisdictional issues.

Kreischer Miller’s Thomas Peters will be a panelist for a session on Operational Due Diligence – The Added Complexity of Bespoke Structures.

More details about the conference.

 

Kreischer Miller Exhibiting at 2018 CFA Institute GIPS Standards Conference

22nd Annual CFA Institute GIPS Standards Conference

September 13-14, 2018
Renaissance Austin Hotel
Austin, TX

As the finance industry grows ever more interconnected, investors need standards of investment performance measurement and reporting that are reliable and comparable across markets – and professionals who can apply them. The GIPS Standards Annual Conference is focused on the implementation and application of the GIPS standards.

Kreischer Miller will once again be exhibiting at this year’s GIPS Standards Annual Conference. Stop by and see us!

More details about the CFA Institute GIPS Standards Annual Conference.

The GIPS 2020 Exposure Draft is Out!

The release of the GIPS 2020 Exposure Draft is an exciting milestone in the development of the Global Investment Performance Standards (GIPS). The volunteers and CFA Institute staff worked hard to assemble performance presentation standards that reflect industry best-practices and that are useful and practical.

The GIPS 2020 Exposure Draft can be found at www.gipsstandards.org. Check out the website for full details.

At a high level, the GIPS 2020 Draft reflects changes to make it more relevant for many firms in the investment industry, including:

  • Alternatives managers
  • Investment advisors that manage broadly distributed pooled funds
  • Asset owners

The GIPS 2020 Draft is proposing several changes that would impact all firms claiming compliance, including:

  • The option to use money weighted returns (such as IRR), instead of time-weighted returns
  • Enhanced flexibility for firms to advertise their GIPS compliance
  • The option for firms to present pooled fund reports, while eliminating the need for single fund composites.

Public comment is a critical element of the standard-setting process. After reading the Draft, check out this document containing questions for public comment. Although you are free to comment on anything relating to the GIPS 2020 Draft, this document raises key questions that the GIPS Executive and Technical Committees have relating to the draft. The questions in the  document can be found here. The comment period runs until December 31, 2018.

We will be issuing additional alerts with more details about the provisions in the Draft. If you have any questions in the interim, or would like to discuss how these new provisions may impact your business, please don’t hesitate to contact us.

We would be pleased to provide further information related to this subject. For more information, contact Thomas A. Peters, Director, Audit & Accounting at tpeters@kmco.com.

 

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GIPS 2020 Is Coming – Let Your Voice Be Heard!

The next version of GIPS is coming. A draft is expected to be released by the end of August with a comment deadline of December 31, 2018. After comments and feedback are received, the target issue date for the final version is June 30, 2019 with a planned effective date of January 1, 2020.

GIPS 2020 will introduce many changes to improve the standards and to ease the burden of compliance for asset owners, alternatives managers, and firms that manage funds. There are also many changes which should improve the standards for everybody.

New versions of GIPS are always released in a preliminary draft before being finalized. This is a good thing because it allows managers, owners, regulators, industry groups, and others to weigh in with their opinions. It is an important element of the standard setting process as it allows everybody in the investment industry to have a say.

Comment letters are read by the GIPS committees and are factored into crafting the final version. Please consider sending a comment letter in response to the draft, even if you only want to address particular topics. You can request confidential treatment if you do not want to have your comment letter posted online.

Be alert for the draft, which will be available soon on www.gipsstandards.org. Please feel free to contact us with any questions.

We would be pleased to provide further information related to this subject. For more information, contact Thomas A. Peters, Director, Audit & Accounting at tpeters@kmco.com.

 

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Financial Industry Insights Over Lunch

Thursday, December 7, 2017
11:30 AM – 3:30 PM
Crowne Plaza in King of Prussia, PA

 

This seminar discussed the latest on regulatory and cyber security issues impacting your firm.

 

Kreischer Miller and Cipperman Compliance Services offered answers to regulatory questions and the opportunity participate in a valuable interactive discussion over lunch at the Crowne Plaza in King of Prussia.

 

 

Speakers included:
  • Thomas Peters, Director, Audit & Accounting, Kreischer Miller
  • Richard Nelson, Director, Tax Strategies, Kreischer Miller
  • Todd Cipperman, Principal, Cipperman Compliance Services
  • Cyber security experts from Kreischer Miller and Align Cyber Security, who took part in a panel discussion focusing on cyber security challenges in investment management organizations.
Program details:
  • Part 1: Thomas Peters addressed recently-issued GIPS pronouncements and where the standards are heading
  • Part 2: Todd Cipperman assessed the most impactful regulatory developments of 2017
  • Part 3: Cyber security experts from Kreischer Miller and Cipperman Compliance Services took part in a panel discussion about the latest cyber security issues and how to protect your firm
  • Part 4: Richard Nelson talked about year-end tax planning in the shadow of tax reform

 Watch the videos from the seminar:

 


 

 

 

Upcoming Changes to Equity Investments (ASU 2016-01)

The year is quickly nearing an end, which will bring a new set of pronouncements that will become effective in 2018. One of those pronouncements is Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-01: Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.

The main impact of ASU 2016-01 is that changes in the value of equity investments must now be included in net income. Companies will no longer be able to classify an equity investment as available-for-sale and recognize changes in value within other comprehensive income. As a result, companies with significant portfolios of equity investments will likely see increased income statement volatility.

In addition to the above change related to equity investments with readily determinable fair values, there was a change for equity investments without readily determinable fair values. For these investments, ASU 2016-01 eliminated the cost method and replaced it with a practicability exception to alleviate the need for companies to determine fair value at each reporting period.

The practicability exception requires these investments to be measured at cost, less impairment, plus or minus observable price changes (in orderly transactions, which is specifically defined in the ASU as not a forced transaction) of an identical or similar investment of the same issuer, assuming they do not already qualify for the net asset value per share practical expedient. Similar to the above, all changes are included in net income.

The implementation guidance issued with ASU 2016-01 indicates that companies do not have to perform an exhaustive search for observable price changes but it will require some effort to identify known or reasonably knowable transactions. Companies should carefully consider the selection of this exception, which the standard permits on an investment-by-investment basis.

This ASU also simplified the impairment method for these investments. As a result, readers of financial statements should see more frequent remeasurement of these investments to fair value.

Two other key changes that came from ASU 2016-01 relate to financial liabilities and deferred taxes. To the extent that a company elects the fair value option for financial liabilities, changes in value related to instrument-specific credit risk will flow through other comprehensive income. As such, a company’s credit risk will not affect net income. As it relates to deferred taxes, the FASB clarified that companies should assess the need for a valuation allowance on deferred tax assets related to available-for-sale debt securities in combination with other deferred tax assets. This clarification should eliminate diversity in practice, since some companies currently assess the need on a separate basis.

ASU 2016-01 is effective for public companies in periods beginning after December 15, 2017 and for all other companies in periods beginning after December 15, 2018. Companies that are not public may early adopt the ASU in periods beginning after December 15, 2017. All companies may already early adopt certain provisions, specifically those related to financial liabilities. Generally, companies should apply the amendments through a cumulative effect adjustment to the balance sheet as of the beginning of the effective period. The provisions related to equity securities without readily determinable fair values require prospective treatment.

We would be pleased to provide further information related to this subject. For more information, contact Craig B. Evans, Director, Audit & Accounting at cevans@kmco.com

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