Applying IFRS – Alternative Performance Measures

This publication explores the guidance for Alternative Performance Measures and their use in the communication of financial information.

Alternative performance measures (APMs) may supplement GAAP reporting, and often represent an effective way of communicating important entity specific developments. However, APMs need to be accompanied by the appropriate descriptions and disclosures to avoid the risk of misleading the users of the financial reports. Regulators in many jurisdictions have issued guidelines for the use of APMs that are helpful benchmarks when developing communication strategies and preparing financial reports. Entities should be mindful of these guidelines, both for compliance purposes and to facilitate effective communication.  This publication explores the guidelines and requirements for Alternative Performance Measures and their use in the communication of financial information in and outside financial statements. It draws on current practice and real life examples.