• Service: Audit, IFRS
  • Date: 2/14/2014

Bridging the GAAP – Communicating through alternative performance measures 

GAAP rarely tells the whole story of a company’s performance. To bridge the gap, companies and investors communicate through key performance indicators, alongside the GAAP numbers. A few KPIs are the subject of agreed, usually sector-specific, definitions; but many are not.

To date, regulators around the world have taken different approaches to non-GAAP information or alternative performance measures. In the most recent development in this field, the European Securities and Markets Authority has issued a consultation paper on APMs. Its aim is to enhance transparency and comparability when APMs are presented in public, regulatory filings.


ESMA’s proposals would apply in the 28 EU member states. However, the demand for APMs does not stop at regulatory borders, and the proposals will be followed with interest beyond the EU.

Read our In the Headlines to find out more about ESMA’s proposals and our views on the wider issues that stakeholders should work together to solve as global requirements evolve.

Bridging the GAAP (2014/03)

Feature image
Investors invest globally, and demand for APMs does not stop at regulatory borders. ESMA’s proposals will be followed with interest beyond the EU.

© 2015 KPMG IFRG Limited is a UK company, limited by guarantee. All rights reserved. KPMG IFRG Limited, registered in England No 5253019. Registered office: 8 Salisbury Square, London, EC4Y 8BB


Share this

Share this

IFRS Hot Topics

IFRS topics
Learn about the latest IFRS developments in insurance, leases, revenue, financial instruments and banking.