ESMA updates its Q&A under the Alternative Performance Measures guidelines
The European Securities and Markets Authority (ESMA) has published six new questions in its Questions and Answers (Q&A) document, on the implementation of its Guidelines on the Alternative Performance Measures (APMs) for listed issuers.
The new questions provide information on:
- the definition of APMs;
- the scope of the APM guidelines;
- application of the scope exemption
- definition of the APM ‘organic growth’;
- how to carry out reconciliation; and
- how to apply the fair review principle.
An alternative performance measure is 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. The guidelines apply to alternative performance measures disclosed by issuers or persons responsible for drawing up a prospectus (read ESMA’s one page summary).
The purpose of this Q&A is to promote common supervisory approaches and practices in the implementation of these guidelines.