AcSB seeks comment on performance measures framework

The Accounting Standards Board (AcSB) is seeking feedback on a newly published framework for reporting performance measures.

The Draft Framework for Reporting Performance Measures aims to help improve financial and non-financial performance measures reported outside of financial statements, said the AcSB in a release. Performance measures can range from measures under GAAP to non-financial or operational measures. The framework will provide guidance on choosing and determining performance measures outside of GAAP.

The organization came up with the framework to address concerns by investors, contributors, lenders and other resource providers about performance measures, the release said.

“While financial statements provide a strong foundation for financial reporting, there’s more information that financial statement users consider— including performance measures—when they make investment, contributing and lending decisions,” said AcSB chair Linda Mezon in the release.

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The voluntary framework aims to address concerns including:

• quality of performance measures being reported;
• lack of consistency, transparency and comparability of performance measures reported; and
• “expectation gap” about the governance practices of entities over how performance measures are developed and reported, and whether those measures are subject to assurance.

The AcSB said it intends to work with the Chartered Professional Accountants of Canada to create additional guidance that is industry or sector specific.

Feedback on the framework will accepted until Sept. 17, 2018.

The draft framework can be read here.

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