Published by Gbaf News
Posted on August 19, 2016
3 min readLast updated: January 22, 2026
ESMA Guidelines on Alternative Performance Measures (APMs) were introduced in July 2016. According to the Guidelines, an APM is a financial measure of historical or future financial performance, financial position, or cash flows other than a financial measure defined or specified in the applicable financial reporting framework.
These Guidelines set out the standards that assist issuers who publish and distribute regulated information, giving them a defined structure, and also assistingthose responsible for drafting a prospectusand presenting Alternative Performance Measures in documents.APMs normally originate from,or are based on the financial reports prepared in adherence to the relevant financial reporting framework, mainly by adding or subtracting amounts from the numberssubmitted in financial statements.
Examplesof APMS include: cash earnings, operating earnings, earnings prior to onetime charges, earnings before interest, taxes, depreciation and amortisation (EBITDA), net debt or similar terms denoting adjustments to line items of statements of comprehensive income, statements of financial position or statements of cash flow.
The objective of the Guidelines is to add efficiency and clarity of Alternative Performance Measures contained in standardised information or prospectuses. The Guidelines define the standards that issuers who distribute regulated information as well as the persons responsible for creating prospectuses should take in consideration when showing Alternative Performance Measures in documents.
CySEC has implemented these Guidelines with an expectation that the issuers and the persons responsible for drawing up prospectuses will conform to them. CySEC will continue to assess and monit compliance of above persons, ensuring the guidelines are met.
ESMA Guidelines on Alternative Performance Measures (APMs) were introduced in July 2016. According to the Guidelines, an APM is a financial measure of historical or future financial performance, financial position, or cash flows other than a financial measure defined or specified in the applicable financial reporting framework.
These Guidelines set out the standards that assist issuers who publish and distribute regulated information, giving them a defined structure, and also assistingthose responsible for drafting a prospectusand presenting Alternative Performance Measures in documents.APMs normally originate from,or are based on the financial reports prepared in adherence to the relevant financial reporting framework, mainly by adding or subtracting amounts from the numberssubmitted in financial statements.
Examplesof APMS include: cash earnings, operating earnings, earnings prior to onetime charges, earnings before interest, taxes, depreciation and amortisation (EBITDA), net debt or similar terms denoting adjustments to line items of statements of comprehensive income, statements of financial position or statements of cash flow.
The objective of the Guidelines is to add efficiency and clarity of Alternative Performance Measures contained in standardised information or prospectuses. The Guidelines define the standards that issuers who distribute regulated information as well as the persons responsible for creating prospectuses should take in consideration when showing Alternative Performance Measures in documents.
CySEC has implemented these Guidelines with an expectation that the issuers and the persons responsible for drawing up prospectuses will conform to them. CySEC will continue to assess and monit compliance of above persons, ensuring the guidelines are met.
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