FRC publishes frequently asked questions on the ESMA APM Guidelines
25 May, 2016
The Financial Reporting Council (FRC) has today issued responses to some frequently asked questions on the European Securities and Markets Authority's (ESMA's) 'Guidelines on Alternative Performance Measures'. The responses have been developed to "assist directors in their consideration of the Guidelines'. — Alternative performance measures: A practical guide
In June 2015, ESMA published its final Guidelines on Alternative Performance Measures (APMs) for listed issuers that are effective from 3 July 2016. Through these Guidelines, ESMA aims to promote the usefulness and transparency of APMs presented to investors.
The publication covers:
- What is an APM?
- Are APMs prohibited or required?
- Do the Guidelines apply to all APMs?
- What APMs should be provided?
- How should APMs be presented?
- What disclosures should be given about APMs?
- How will the FRC monitor compliance with the Guidelines?
The Financial Conduct Authority (FCA) and the FRC are the UK Competent Authorities responsible for monitoring the compliance with the Guidelines. The FRC has indicated that it will consider the Guidelines when reviewing company reports and accounts in assessing whether they are fair, balanced and comprehensive.
Please click to access the questions and answers on the FRC website.
Our Need to know — Alternative performance measures: A practical guide is also available to assist you.
