Companies and investors have had to contend with a great deal of
recent change in the reporting of performance measures
Regulatory and market initiatives are affecting aspects of the
reporting of metrics, and giving investors new information to
attempt to gather, understand and use. In light of this, the
Financial Reporting Council's Financial Reporting Lab ('the
Lab') initiated a project on performance metrics to understand
whether the changes have met the needs of investors, and what
investors consider to be best practice reporting.
Different approaches
The Lab has been speaking to companies and investors throughout
2018 about their approaches to reporting, monitoring and use of
performance metrics. Not surprisingly, these conversations
highlighted that the selection and reporting of metrics is key to
investors' assessment of the credibility of management.
Investors seek to understand performance through the eyes of
management, and the metrics being used
