GIPS-compliant performance at least 5 or 10 years?

[272Celsius]

I am actually a bit confused:
“The GIPS standards require that at least 5 years of GIPS-compliant performance be reported. After presenting a minimum of 5 years of GIPS-compliant performance, the firm must present an additional year of performance each year, building up to a minimum of 10 years of GIPS-compliant performance.” (I.5.A.1a)
doesn’t it simply mean that it requires at least 10 years of GIPS-compliant performance??? I don’t get the difference between the 1st and 2nd sentences…

 

[idreesz]

-272Celsius Wrote:
——————————————————-
> I am actually a bit confused:
>
> “The GIPS standards require that at least 5 years
> of GIPS-compliant performance be reported. After
> presenting a minimum of 5 years of GIPS-compliant
> performance, the firm must present an additional
> year of performance each year, building up to a
> minimum of 10 years of GIPS-compliant
> performance.” (I.5.A.1a)
>
> doesn’t it simply mean that it requires at least
> 10 years of GIPS-compliant performance??? I don’t
> get the difference between the 1st and 2nd
> sentences…
I think you cant present GIPS compliant information (to the public) for less than 5 years. After 5 years you can present it and then build it up.
Waiting for another answers!

 

[pfcfaataf]

when you decide to present gips compliant, you must start to show 5 years at least or what available if exist less than 5.
and next year you add next year and so on upto minimum 10 years

 

[idreesz]

pfcfaataf Wrote:
——————————————————-
> when you decide to present gips compliant, you
> must start to show 5 years at least or what
> available if exist less than 5.
>
> and next year you add next year and so on upto
> minimum 10 years
What if you exits for more than 10 years? Show 5 years and build up or show 10 years?

 

[jem]

even if u have 10 years of history, you’re only required to report a minimum of 5 in the first year of compliance. So yes, show 5 and +1 every year to at least 10. However, GIPS recommends reporting as many years of compliant data as available.

 

[272Celsius]

oh… i think i get it… let me confirm with an example:
if a firm decides to report GIPS-compliant performance at end of 2010, the minimum requirement will be:
end of 2010: report 2006-2010
end of 2011: report 2006-2011
end of 2012: report 2006-2012
end of 2013: report 2006-2013
end of 2014: report 2006-2014
end of 2015: report 2006-2015
end of 2016: report 2007-2016
end of 2017: report 2008-2017
end of 2018: report 2009-2018
right?

 

[jem]

-272Celsius Wrote:
——————————————————-
> oh… i think i get it… let me confirm with an
> example:
>
> if a firm decides to report GIPS-compliant
> performance at end of 2010, the minimum
> requirement will be:
>
> end of 2010: report 2006-2010
> end of 2011: report 2006-2011
> end of 2012: report 2006-2012
> end of 2013: report 2006-2013
> end of 2014: report 2006-2014
> end of 2015: report 2006-2015
> end of 2016: report 2007-2016
> end of 2017: report 2008-2017
> end of 2018: report 2009-2018
>
> right?
yeah

 

[darlia]

you can be GIPS compliant. with less than 5 years data if the firm has been around less than 5 years.

 

[d31dy]

I thought I understood this until I looked at the CFAI Sample Exam Volume 2. The answer to question 24 states that the company is required by GIPS to present 10 years of performance since the composite has been in existence for that period. FYI, in the question, it was described that the company is currently not GIPS compliant, but would like to be GIPS compliant ASAP.
Since this is the first year it is going to claim compliance with GIPS, I don’t understand why it can’t just present 5 years of data. Any clarification is appreciated. Thank you.

 

[Paraguay]

The Sample contradicts the book on numerous occasions.
I have begun to think the sample was written by an outside agency and not CFAI.

 

[d31dy]

Is there any CFAI sample exam errata page?