Developing and Reporting Supplementary Financial Measures

International Good Practice Guidance

Feb 26, 2014 | Exposure Drafts and Consultation Papers
16 Pages

Comments due by: May 26, 2014

This guidance seeks to establish a benchmark for the use of supplementary financial measures, in order to improve understanding of an organization’s performance among management, investors, and other stakeholders. It provides principles regarding the qualities a measure should have and disclosures that should accompany them if reported externally. Building on the qualitative characteristics of useful financial information, the guidance recommends professional accountants consider a number of attributes when developing and reporting supplementary financial measures. The guidance also provides a number of tips for disclosure of supplementary financial measures.

The guidance is meant for all organizations that want to use supplementary financial measures, regardless of size or structure, private or public. Many such measures are widely used in both internal and external reporting, for example, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA); Underlying Profit; and Free Cash Flow.


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Submitted Comment Letters

1. ANAN  (Nigeria)
March 31, 2014

2. Association of Accounting Technicians (AAT)  (United Kingdom)
May 22, 2014

3. Deloitte Touche Tohmatsu Limited
May 22, 2014

4. IMA (Institute of Management Accountants)  (United States)
May 23, 2014

5. Institute of Certified Public Accountants of Kenya (ICPAK)  (Kenya)
May 26, 2014

6. VRC  (Netherlands)
May 26, 2014

7. Institute of Singapore Chartered Accountants  (Singapore)
May 27, 2014

8. CPA Australia  (Australia)
June 2, 2014

9. Denise Silva Ferreira Juvenal  (Brazil)
June 21, 2014


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