New guidance on the application of the Alternative Performance Measures Guidelines (APM).
The European Securities and Markets Authority (ESMA) has published a Q&A relating to ESMA APM Guidelines to provide guidance on the application of the APM Guidelines in the context of the COVID-19 pandemic. In the context of the COVID-19 pandemic, the Q&A (Question 18):
Highlights the main principles of the APM Guidelines;
encourages issuers to use caution when adjusting APMs and when including new APMs to address the impact of COVID-19;
invites issuers to provide:
narrative information regarding the modifications made, the assumptions used and the impact of COVID-19;
information on measures taken or expected to be taken by issuers to address the impact that the COVID-19 outbreak may have in their operations and performance.
The APM Guidelines address the information that issuers should publish when disclosing APMs (e.g. Operating Results, EBIT, EBITDA, Free Cash-flows) to the market in management reports, prospectuses and ad-hoc disclosures (such as Quarterly Earnings releases).