GIPS: minimum or maximum?

Willispierre, thanks for your feedback. I’ve always been confused on this subject, and I get a sneaky suspicion it’ll be on the exam. You say you know for a fact that it is the minimum. Can you please provide some textual proof, or a question #, or something, so we can look at it. thanks

Just common sense. It doesn’t explicitly say this anywhere. Maybe you should get a better understanding of GIPS and you will understand the intuition? As an example, a company can voluntarily hire a 3rd party to verify their compliance. GIPS does not require this. I would argue that the companies who are “verified” would have stronger (maximum) performance presentation than those who do not. However, to comply with GIPS (at a minimum) this is not required. There a number of other examples that you can apply. I think that it will be more beneficial to have a solid understanding of GIPS rather than just knowing if it is the “maximum” or “minimum” worldwide standard IMO.

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willispierre Wrote: ------------------------------------------------------- > Just common sense. It doesn’t explicitly say this > anywhere. Maybe you should get a better > understanding of GIPS and you will understand the > intuition? > > As an example, a company can voluntarily hire a > 3rd party to verify their compliance. GIPS does > not require this. I would argue that the > companies who are “verified” would have stronger > (maximum) performance presentation than those who > do not. However, to comply with GIPS (at a > minimum) this is not required. There a number of > other examples that you can apply. > > I think that it will be more beneficial to have a > solid understanding of GIPS rather than just > knowing if it is the “maximum” or “minimum” > worldwide standard IMO. But to say it is the minimum standard implies that anything less than that is unacceptable, which is not the case because there are other performance standards that meet the standards of the code which are not GIPs!

Last piece on this. … we’ve found that the CFA text says it’s no longer the minimum. Maybe it was at some point… who cares. They clearly state it is not the minimum. Now, that doesn’t necessarily mean it’s the maximum… but if your null hypothesis is that GIPS is the minimum… you have to reject the null. Doesn’t mean that the alt-hypothesis is true with 100% certainty, but you must reject the null :slight_smile:

I agree–minimum and maximum are rather subjective qualifiers anyway…

I like MCF’s hypothesis test. It may not be the maximum, but it is definitely “not the minimum.”