In the past, entities have defined and voluntarily presented their own measures of performance, commonly referred to as alternative performance measures (APMs) or non-GAAP measures, in their financial statements.
To support the new statement of profit or loss structure and ensure the reported balances are well corroborated, IFRS 18 Presentation and Disclosure in Financial Statements defines what will qualify as MPM and makes MPMs disclosure a mandatory requirement.
This is aimed at promoting transparency and usefulness of financial information.
Read more about what qualifies as an MPM and the disclosure requirements stipulated in IFRS 18 in our comprehensive analysis.
By Alexander Thuku,
Senior Consultant and Accounting Panel Expert, AARO
