reading 6, page 355 of CFAI book about provisions for Private Equity:
“There are two provisions related to input data. For periods ending on or after 1 January 2011, private equity investments must be valued in accordance with the definition of fair value and the GIPS Valuation Principles, and they must be valued at least annually (I.7.A.1–2). We will discuss the GIPS Valuation Principles in a later section of this reading.”
later in the textbook, page 357
“Finally, there are some recommendations that we have not previously mentioned. Private equity investments should be valued at least quarterly ; for periods ending prior to 1 January 2011, the SI-IRR should be calculated using daily cash flows; and firms should disclose and explain material differences between the valuations used in performance reporting and the valuations used in financial reporting as of each annual period end (I.7.B.1–3).”
Which is correct?