GIPS composite years req'd

[magicskyfairy]

So here’s the wording, right out of the text, for the Presentation and Reporting Requirements of GIPS:
“For each GIPS-compliant composite presented, the GIPS standards require that firms show at least five years of annual performance (less if the firm or composite has been in existence for a shorter period), and that the GIPS-compliant performance record must then be extended each year until 10 years’ results have been presented.”

So does that mean each GIPS composites that are presented must show at least 5 years, while their internal records have to actually go back at least 10 (though they don’t have to present years 6-10 in their composites that they present)?

 

[sachin_patel]

It means
(1) If your firm is 3 years old, you don’t have 5 years of data. in that case you can present past 3 years of complient data.
(2) If your firm is say 6 years old, and first two years, firm was not complient, you only have 4 years of complient data. in that case you must wait one more year of complient data to become complient.
(3) once (2) is satisfied, you must continue to show complient data untill you have total of 10 years of complient data.

 

[zulu007]

Agree with Sachin.

 

[magicskyfairy]

ok thx