Mind the GAAP – FMA revised guidance note released

The Financial Markets Authority (FMA) has released its revised guidance note on the disclosure of non-GAAP financial information, following a consultation process. Chapman Tripp submitted.

The FMA's guidance note continues to recognise that non-GAAP financial information (also called alternative performance measures) can be useful for market participants, providing greater insights into an issuer's financial performance.

This is consistent with the results from the External Reporting Board's recent survey, in which 88% of respondents found alternative performance measures useful when assessing an issuer's performance, given the inherent limitations of GAAP financial information.