2009 BSAS Exam Doubts - 3

GIPS: The firm’s inception is 2000. The performance records of the composites are from 2001 through 2008. 2000 is excluded given the lack of accounting records needed to recalculate performance. T/F?

i dont think there is any problem with GI{PS compliance. it meets the requirement of atleast 5 yrs of GIPS compliant historical data (that is satisfied by 2004-08 data). and absent accounting data from which returns will be calculated for year 2000 is actually compliant with GIPS. you cannot show performance for any year for which no data records are maintained or are accidently lost / damaged / destroyed.

I agree with level3aspirant. However, can not exclude performance for 2000 if it used to report it. For example, if the firm started reporting at the end of 2004, included 2000-2004, then it can’t drop 2000 until 2010.

If 2000, didnt have a full years worth of info, it can not disclose it because it cant annualize returns. Also, like level3aspirant says, if they dont have accounting records they can still comply with GIPS. I believe this firm is still in compliance with GIPS.

Not in compliance. 2000 has to be in compliance too…

GIPS is in compliance. No reason was given. Just wanted to get your thoughts. Thanks. Still long ways to go. TGIF