JGovender

Its because different firms will be in different positions based on how long theve been arround..

Consider this: Firm that started in 2007 wants to be GIPS compliant. Because they have been arround for <5 years, they disclose GIPS compliant @#$%& since INCEPTION. Then they can claim compliance.

If a firm has been around since 2001, they have options on how they can claim compliance. First, they can go back 5 years minimum, then add 5 and claim gips compliance in 2015. OR they can go back 6 then forward 4, back 7 forward 3, back 8 forward 2, but they MUST go back at least 5 years. They cannot go back 3 then forward 7.

This is to prevent cherry picking results.