NON-GAAP PERFORMANCE MEASURES – AN ALTERNATIVE OR NOT IN THE COVID-19 ENVIRONMENT

Abstract

Non-GAAP performance measures, also referred to as alternative performance measures (APMs), are company’s financial metrics that fall outside the scope of the applicable financial reporting framework and are considered an efficient tool for communication with the stakeholders. As the novel coronavirus tend to impact significantly companies’ financial position, performance and cash flows, a recent discussion was initiated about the relevance of adjusting the existing APMs and introducing new APMs. In light of the ongoing pandemic, this paper is aiming to focus attention of practitioners and academics on the use of APMs in the Covid-19 environment. Their relevance and reliability are discussed through the lens of the guidance, issued by the International Organization of Securities and Commissions, the European Securities and Markets Authority and the SIX Swiss Exchange.