- CFA Exams
- CFA Level I Exam
- Study Session 1. Ethical and Professional Standards
- Reading 5. Global Investment Performance Standards (GIPS)
- Subject 2. The Scope of GIPS Standards with Respect to Definition of the Firm, Historical Performance Record, and Compliance
CFA Practice Question
According the Global Investment Performance Standards (GIPS), what time period is required for the presentation of performance?
A. a minimum of two years
B. a minimum of ten years
C. a minimum of five years, or since the inception of the firm or composite if the firm has been in existence for less than five years
Explanation: What time period must be presented?
The GIPS require firms to show GIPS-compliant history for a minimum of five years, or since the inception of the firm or composite if the firm has been in existence for less than five years.
User Contributed Comments 3
| User | Comment |
|---|---|
| Goran80 | !!!Exception - if firm is in in the busibess les then 5 years!!! |
| DiscoAfro | The question is not clear on whether this is for a company that has recently decided to be GIPS compliant or one that is GIPS compliant for more than 5 years. I would think this distinction is important because when a company recently started it only has a requirement of 5 years. For every following year the requirement increase with one year until the period is at minimum 10 years. In answering this question I would there for say at minimum 10 years. This because answer C implies that the minimum is always 5 years, but this is not the case. Please correct me if necessary. |
| barbsalz | agree, my answer was 10 years because of the extra year required for each year of performance after the min of 5! |