ESMA · ESMA_QA_1882 Answer Published

Reconciliation; Paragraph 26 and 28 of the APM Guidelines.

Regulation
Transparency Directive (TD) Directive 2004/109/EC
Topic
Alternative Performance Measures (APM)
Submitted
2017-10-30
Answered
2017-10-30
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Question

Do the APM Guidelines require a numeric reconciliation of the APM to “the most reconcilable line item, total or subtotal” presented in the financial statements or is it sufficient to include a qualitative explanation of the items which adjust the financial statement’s figures?

Answer

[ESMA32-51-370 APM Q16] Paragraph 28 of the APM Guidelines foresees that “the reconciliation should show how the figure is calculated”. Therefore, issuers should provide a reconciliation in the form of a numeric reconciliation between “the most directly reconcilable line item, total or subtotal” presented in financial statements and the APM used. As it is required in paragraph 26 of the APM Guidelines, the reconciliation should separately identify and explain the material reconciling items.
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This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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