Alternative performance measures need to stay in their proper place

What is an APM?

Alternative profit margin

Alternative performance measure

Altered profit margin

Alternative presentation method

Which of the following statements about APMs is true?

APMs can only be produced in limited circumstances

APMs are covered by IAS 24 Related Parties

APMs can be produced for whatever the company decides

APMs cannot be used in an annual report

Which of the following describes a problem with APMs?

They only ever show a biased position of the entity

These are not specific to the entity

They have replaced GAAP figures in the financial statements

It can be difficult to assess what the key figures are

What percentage of the FTSE 100 uses APMs?

5 percent

20 percent

80 percent

95 percent

Which of these is not an argument for using APMs?

They can link financial/non-financial information

Management can use them to highlight key drivers

They give a more unbiased picture of performance

They can remove unusual items

Which of these is a concern over the prominence of APMs?

They should not be used for non-listed entities

None of the above

They are given prominence over statutory figures

They are not given sufficient prominence

Which of the following is not commonly included as an exceptional item?

Gains/losses on disposal

Restructuring costs

Impairments

Depreciation

Which of the following statements are items proposed by the IASB? Statement 1: APMs should be reconciled to statutory figures, or Statement 2: APMs should be in the notes to the accounts, not more prominent than statutory figures

Both statements are correct

Neither statement is correct

Statement 2 only is correct

Statement 1 only is correct

Why did the SEC fine ADT?

Insufficient disclosure of key accounting policies

Production of inaccurate figures

Non-disclosure of GAAP items

Presenting APMs with more prominence than statutory figures

Which, if any, of the following statements is correct? Statement 1 - Facebook no longer produce an APM excluding employee stock compensation from its profits, or Statement 2 - Tesla no longer produce an APM excluding employee stock compensation from its profits

Neither statement is correct

Statement 1 only is correct

Both statements are correct

Statement 2 only is correct

Alternative performance measures need to stay in their proper place

What is an APM?

Which of the following statements about APMs is true?

Which of the following describes a problem with APMs?

What percentage of the FTSE 100 uses APMs?

Which of these is not an argument for using APMs?

Which of these is a concern over the prominence of APMs?

Which of the following is not commonly included as an exceptional item?

Which of the following statements are items proposed by the IASB? Statement 1: APMs should be reconciled to statutory figures, or Statement 2: APMs should be in the notes to the accounts, not more prominent than statutory figures

Why did the SEC fine ADT?

Which, if any, of the following statements is correct? Statement 1 - Facebook no longer produce an APM excluding employee stock compensation from its profits, or Statement 2 - Tesla no longer produce an APM excluding employee stock compensation from its profits

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