Disclosure initiative — Primary Financial Statements - International Accounting Standards Board
At its meeting on April 24, 2018, the Board discussed the requirements for management performance measures and management-defined adjusted earnings per share (adjusted EPS).
On clarifying requirements for management performance measures, the Board tentatively decided: (i) all entities shall identify a measure (or measures) of profit or comprehensive income that, in the view of management, communicates to users the financial performance of the entity; and (ii) requirements apply to management performance measures as described in paragraph a(ii).
On management-defined adjusted earnings per share (adjusted EPS), the Board tentatively decided that if an entity identifies a management performance measure, it is required to: (i) disclose in the notes adjusted EPS calculated consistently with that management performance measure; and (ii) disclose the effects of tax and non-controlling interests separately for each of the differences between the numerator of adjusted EPS and the numerator of EPS.
The Board will continue discussing topics within the project’s scope at future Board meetings.
Review the IASB Update and podcast on the Board's Web site.