Disclosure initiative — Primary Financial Statements – International Accounting Standards Board
Date recorded:
At its meeting on December 12, 2018, the Board discussed:
- whether management performance measures can be presented using columns in the statement(s) of financial performance, and tentatively decided to prohibit the use of columns to present information about management performance measures in the statement(s) of financial performance; and
- the use of the measure EBITDA including whether it should be added to the list of measures that are not considered to be management performance measures, and tentatively decided (a) to add operating profit before depreciation and amortization to the list of measures that are not considered to be management performance measures; and (b) not to provide examples of when it is potentially misleading for an entity to use the label ‘EBIT’ or the label ‘EBITDA’ to describe performance measures included in the financial statements. This tentative decision revises a previous tentative decision on the use of the label ‘EBIT’. The Board will continue discussing topics within the scope of the project at future Board meetings.
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