A graphical history of verifications

In preparing for today's webinar on GIPS(R) (Global Investment Performance Standards) Performance Examinations, I constructed, what I believe to be, the first graphical depiction of the confusing history of verification:

A brief explanation is in order:

First, we can consider Level I to be analogous to today's "verifications," while Level II is akin to today's "performance examinations." Now to the figure:

• In the beginning, under the "old" AIMR-PPS(R), we began with the requirement that firms MUST undergo a firm-wide Level I verification before commencing with a (composite level) Level II verification.
• Things got a big awkward when the large accounting firms declared that they would not do a Level I, but would do a Level II. And so, a "Modified Level II" verification was added, which was at the composite level, but incorporated the elements of Level I.
• The 1997 edition of GIPS changed the original Level II to its Modified form, but dropped the qualifier.
• Moving onto GIPS, the draft did not reference performance examinations, but only firm-wide verification.
• However, when the first edition was presented in 1999, performance examinations appeared.

And so, briefly, this is what has occurred. Oh, and it's not too late to sign up for today's webinar, which will be at 11:00 AM! Contact Patrick Fowler (732-873-5700) for details. We already have quite a crowd showing up!