In October 2005, the Committee of European Securities Regulators (CESR), the predecessor body to the European Securities and Markets Authority (ESMA), published a Recommendation on alternative performance measures (the CESR Recommendation). The purpose of the CESR Recommendation was mainly to reinforce the objectives of the Regulation on the application of international accounting standards.

As the CESR Recommendation has been in force for more than 8 years, ESMA has decided to review it. ESMA intends to strengthen the principles within the CESR Recommendation and re-issue them as guidelines. In light of this, ESMA has now published a Consultation Paper which is intended to inform market participants about the background to its decision to revise the CESR Recommendation and seek their views on such revision.

The deadline for responding to the Consultation Paper is 14 May 2014. ESMA expects to publish final guidelines in Q4 2014.

View ESMA Consultation Paper – Guidelines on Alternative Performance Measures, 13 February 2014