Alternative Performance Measures are a relevant aspect in today’s external and internal reporting. Two thirds of Switzerland’s 30 largest companies use them to provide an additional view on sustainable performance and bridge the information gap between investors and management. With regulation by SIX Swiss Exchange looming on the horizon, many listed companies will now need to think about their external reporting practices, internal policies and processes to be compliant and transparent.
Financial statements and key figures in accordance with internationally recognized accounting standards alone are rarely ideal to tell a company’s story holistically. This is why so-called Alternative Performance Measures (APMs) are often being additionally used to bridge the information gap between companies and investors. For this purpose, GAAP measures (e.g., net profit) are adjusted for certain items (e.g., one-off costs) and translated into non-GAAP measures (e.g., adjusted net profit).