New BDO IFR Bulletin - ESMA Public Statement: Guidelines on Alternative Performance Measures (APMs) and Questions & Answers

FRB 2017/14 ESMA public Statement: Guidelines on Alternative Performance Measures (APMs) and Questions & Answers is now available from the BDO Global web site

This IFRB summarises the European Securities and Markets Authority (ESMA) issued Guidelines on Alternative Performance Measures (APMs) aimed at promoting the usefulness and transparency of APMs included in prospectuses and/or regulated information for listed issuers.  ESMA considered that a common approach to APMs was necessary to ensure consistent, efficient and effective supervisory practices and a uniform and consistent application of the Transparency Directive (TD) (and by extension the Market Abuse Regulation(MAR)). 

There are 17 Q&As for ESMA’s Guidelines on APMs, which cover:

• The definition of APMs and basis of their calculation;
• The prominence of APMs;
• The use of the ‘compliance by reference’ principle;
• The scope of the Guidelines on APMs;
• Application of the scope exemption;
• Definition of the APM ‘organic growth’;
• How to carry out reconciliations; and
• How to apply the fair review principle.

To view the IFR bulletin, please click here.