This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice (http://www2.deloitte.com/ca/en/legal/cookies.html) for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

IASB member discusses non-GAAP measures

  • IFRS - IASB Image

Mar 02, 2017

On March 2, 2017, the International Accounting Standards Board (IASB) posted an article from Compliance Week, where IASB member Gary Kabureck discussed non-GAAP measures and plans the IASB has to address some of its challenges.

Mr. Kabureck noted that the IASB would begin addressing non-GAAP earnings measures in its research project on primary financial statements. However, he stated that “[t]he challenge for us is to put some order and structure into the reporting of financial performance while simultaneously providing relevant information that faithfully represents the performance of the company.” Some of the challenges include EBIT, income before non-recurring items, income from core operations, and operating profit. Next, he provided three possible philosophical approaches when determining the composition of an alternative performance measure. These approaches included:

  • Explicit requirements for composition.
  • Managerial approach similar to segment reporting.
  • Principles-based approach.

Finally, he discussed accounting policy disclosures that are being considered by the IASB.

Review the article on the IASB’s website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.