Management Performance Measures
IFRS 18 includes a new requirement to include disclosures of management- defined performance measures in the financial statements. Management should identify such management-defined performance measures (MPMs). Specifically, these are a subtotal of income and expenses that is used in any public communication and is used to communicate to investors management’s view of an aspect of the financial performance of the entity as a whole. Information on MPMs should be included in a single note in the financial statements.
It should involve an explanation of why management believes it provides useful information, a description of how it is calculated, a reconciliation between the MPM and the most directly comparable subtotal required by IFRS 18 and a description of how the entity manages the income tax effect. Management-defined performance measures should be identified.
IFRS 18 | MANAGEMENT PERFORMANCE MEASURES
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