Sugar-coating performance measures

Which of these is the correct definition of a MPM?

Management profitability measure

Management performance measure

Main performance measure

Managed profit measure

Which of the following statements about MPMs is true?

MPMs cannot be used in an annual report

MPMs are covered by IAS 24 Related Parties

MPMs can be produced for whatever the company decides

MPMs can only be produced in limited circumstances

Which of the following describes a problem with MPMs?

These are not specific to the entity

They have replaced GAAP figures in the financial statements

It can be difficult to assess how they relate to statutory figures

They only ever show a biased position of the entity

What was the controversial MPM used by some during the pandemic?

EBITDAC

Underlying profits

EBITDA

Exceptional profits

Which body recently issued a warning to companies over their use of MPMs?

Financial Reporting Council

Securities and Exchange Commission

Financial Accounting Standards Board

International Accounting Standards Board

Of the sample of 20 listed companies, how many showed MPMs that increased profit?

20

19

18

17

In which project does the work on management performance measures sit within the IASB workplan?

Primary Financial Statements

Management Commentary

Goodwill and impairment

It is not on the workplan

Which of the following statements are items proposed by the IASB? Statement 1 - MPMs should be reconciled to statutory figures, or Statement 2 - Management should explain why the MPM shows a view of management's performance

Statement 1 only is correct

Neither statement is correct

Statement 2 only is correct

Both statements are correct

Who is responsible for the regulation of alternative metrics in US-listed companies?

International Accounting Standards Board

Financial Reporting Council

Financial Accounting Standards Board

Securities and Exchange Commission

Which, if any, of the following statements is correct? Statement 1 - Management will be required to explain why the MPM is useful for the users, or Statement 2 - Management will be exempt from reconciling the MPM to statutory figures if doing so would disclose confidential information

Both statements are correct

Neither statement is correct

Statement 2 only is correct

Statement 1 only is correct

Sugar-coating performance measures

Which of these is the correct definition of a MPM?

Which of the following statements about MPMs is true?

Which of the following describes a problem with MPMs?

What was the controversial MPM used by some during the pandemic?

Which body recently issued a warning to companies over their use of MPMs?

Of the sample of 20 listed companies, how many showed MPMs that increased profit?

In which project does the work on management performance measures sit within the IASB workplan?

Which of the following statements are items proposed by the IASB? Statement 1 - MPMs should be reconciled to statutory figures, or Statement 2 - Management should explain why the MPM shows a view of management's performance

Who is responsible for the regulation of alternative metrics in US-listed companies?

Which, if any, of the following statements is correct? Statement 1 - Management will be required to explain why the MPM is useful for the users, or Statement 2 - Management will be exempt from reconciling the MPM to statutory figures if doing so would disclose confidential information

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