B

Question 1

The ‘definition’ for GIPS

Answer 1

must be the corporation, subsidiary, or division that is held out to clients as a business entity. If a firm has diff. geographic locations then the definitions of the firm should include all the various geographic locations and their clients. Firms based in any country may present GIPS compliant performance histories.

Firms must present a min 5 years of compliant performance presentation for the firm and each composite unless the firm or composite has been in existence less than 5 years. For firms or composites in existence less than 5 years, compliant performance since inception must be presented in order to claim compliance. After the initial compliant performance presentation, one year of compliant performance must be added each year to a required (min.) performance history of 10 years

Firms may present periods of noncompliant performance immediately prior to the compliant performance history as long as no noncompliant performance is presented for an periods after Ja 1, 2000. Firms must specifiy which performance results are noncompliant and the ways in which such (noncompliant) performance does not comply with GIPS.