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