The European Securities and Markets Authority has published some new Q&A to assist with the interpretation of its Guidelines on Alternative Performance Measures.
Alternative performance measures are a "financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. APMs include measures such as EBITDA or sales per square metre. ESMA's APM Guidelines apply to regulated information or prospectuses (but not financial statements) published on or after 3 July 2016 and seek to improve the usefulness, transparency and comparability of APMs.
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