The European Securities and Markets Authority (ESMA) has updated its questions and answers document covering the implementation of its guidelines on alternative performance measures, in a bid to promote common supervisory approaches and practices
ESMA defines an alternative performance measure as a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. The guidelines, which were originally published in 2015, apply to alternative performance measures disclosed by issuers or persons responsible for drawing up a prospectus and are applicable from July 2016.
The regulator has added six new questions to the Q&A. These provide information on the definition of alternative performance measures; their scope; the application of the scope exemption; the definition of the alternative performance measure ‘organic growth’; how to carry out reconciliation; and how to apply the fair review principle.
Questions and answers ESMA Guidelines on Alternative Performance Measures (APMs) is here.
Report by Pat Sweet
