The European Securities and Markets Authority (ESMA) issued guidelines on alternative performance measures in order to promote the usefulness and transparency of alternative performance measures (APMs) included in prospectuses and/or regulated information. Adherence to the guidelines is intended to improve the comparability, reliability and/or comprehensibility of APMs.

ESMA has now updated its Q&As on the implementation of its guidelines on APMs for listed issuers.

The new questions in the Q&As 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.

View ESMA updates its Q&A under the Alternative Performance Measures Guidelines, 30 October 2017