ESMA reports on EU issuers’ use of APMs
24 Dec 2019
In June 2015, the European Securities and Markets Authority (ESMA) published its final Guidelines on Alternative Performance Measures (APMs) for listed issuers that became effective in July 2016. ESMA has now published a report that builds on a desktop review of 2018 annual financial reports to assess issuers’ compliance with the guidelines.
The assessment of issuers’ compliance with the guidelines shows that there is significant room for improvement as only a minority of issuers comply with all principles. The report also highlights that the use of APMs is widespread in all sectors and within all regulated documents. Significant diversity exists in the number and type of APMs used, as well as in their labels and definitions. ESMA notes that ratios and subtotals included inside financial statements may also fall within the definition of an APM and thus should comply with the guidelines.
ESMA will continue to monitor the application of the guidelines and take appropriate actions in case of infringements. ESMA will also submit the report to the IASB as part of its contribution to the IASB’s exposure draft consultation on General Presentation and Disclosures.
Please click to access the report on the ESMA website.
