Tricky GIPS Question on Schweser Live Mock only, accordance, determine, following

soddy1979

Of the following disclosures included in Swift’s report, determine which is least likely to indicate a violation of the GIPS.
A. The composite was created in November 2002.
B. All returns are calculated in accordance with the GIPS.
C. The Large-Cap Equity Composite includes only the large-cap equity segment of firm portoflios that invest in large-cap equities.
Answer is A.
For choice A, how is this not a violation if the presentation starts in January 2003? The answer choice even says “Beginning January 1, 2011, if the initial period is less than one year, the return through year-end must be presented.”  Is it because the return presetnation shows through 2009 and thefore, the standard doesn’t apply?
For choice B. why is that note a violation?
For choice C, why is that a violation?  It’s a carve-out and carve-outs are allowed.  Is it because there has to be explicit mention of being managed separately with its own cash balance?

mdfb79

so is the implication in choice C that he just took a bunch of carveouts and created the composite from only carveouts? i.e. there is no one single portfolio in this composite

parott

B is a violation -
0.A.7 Statements referring to the calculation methodology as being “in accordance,” “in compliance,” or “consistent” with the Global Investment Performance Standards, or similar statements, are prohibited.
C. The Large-Cap Equity Composite includes only the large-cap equity segment of firm portoflios that invest in large-cap equities.
Carveout rule is only applicable after Jan 1 2010, I believe.
If you are presenting a Composite - All Portfolios in that segment must be presented. Not only the large cap equity segment of portfolios investing in Large Cap equities.
You could have the same portfolios in multiple composites … but you cannot I believe do what has been done above.