C. A fair question.
Cora: “Mesa is permitted to link our noncompliant annual performance data from 1996-1999 to our GIPS compliant data, as long as we meet the disclosure requirements. This part OK.
GIPS reporting recommendations suggest that we eliminate all non-compliant data after presenting the required 5 years of compliant historical performance.” This is wrong. A minimum of 5 years must be presented up to 10 years of returns.
There is no recommendation about eliminating anything.
Be very careful with GIPS questions. This one is old. There USED TO BE a recommendation to bring non-compliant data into compliance but this is no longer the case with the 2010 standards.
I’ve found several questions that are based on the 2005 version of the standards.