i don't understand this gips false, understand, recommend, accounts

bchadwick

4. In the event of any significant external cash
> flows, GIPS recommend the use of temporary new
> accounts rather than temporarily removing the
> portffolio from the composite.


TRUE or FALSE??...... from GIPS quiz someone posted. i did well on test but i have honestly never heard of this after 4-5 readings.

i said false, because i hoped it was gibberish........... but i think it was true. not sure.

is this in the material?? institute/schweser??

thanks in advance!!!

IAmNeil

hey bruin, think that was my quiz. it's a recommendation of GIPS, but NOT required. definitely in the GIPS.