Hopefully the mental strains of preparing for the CIPM Principles Exam ***and*** getting ready for the I.R.S. tax man on April 15th is not too much for the Principles candidates out there!
I have received a couple of questions lately regarding the CIPM Principles curriculum and what one needs to know with respect to after-tax performance.
This post should also clarify the discussion on after-tax performance during our webinar yesterday.
The following Learning Outcome Statements (LOS) were dropped from the CIPM curriculum, effective in the Spring 2010 exam window:
- Calculate anticipated tax rates
- Calculate pre-liquidation returns, including adjustments for nondiscretionary realized taxes
- Calculate the benefit of tax loss harvesting
Thus, calculation of after-tax returns is not required.
Having said that, the following LOS remain part of the curriculum (as part of Study Session II):
- Explain the major issues surrounding after-tax performance measurement
- Evaluate approaches to after-tax benchmark selection
- Compare and contrast the pre-liquidation and mark-to-liquidation methods for calculating after-tax performance
This change was announced to the CIPM Prep Providers back in November 2009, and the details can also be found at following link: https://www.cfainstitute.org/cipm/curriculum/curriculum_updates.html