Revised Framework for Reporting Performance Measures issued following feedback from around the world
TORONTO, Dec. 12, 2018 /CNW/ - The Accounting Standards Board (AcSB) has issued the revised Framework for Reporting Performance Measures: Voluntary guidance to enhance the relevance of financial reporting, to support the next annual reporting cycle.
The Framework was created to help entities – from public to private companies, to not-for-profits and pension plans – improve the quality of financial and non-financial performance measures they choose to report outside of the financial statements.
"Investors, contributors, lenders and others are using this type of information to make financial decisions. Therefore, the quality of these performance measures is important," said Linda Mezon, Chair, AcSB. "In addition, these measures need to link to an entities' strategies, goals and objectives. That linkage focuses on the value entities provide, which makes performance measures useful and transparent."
Released in draft form this June, the AcSB undertook extensive activities between June and October 1, 2018 to discuss and get feedback on the Draft Framework's proposals via in-person discussions, surveys, and written responses. These activities resulted in feedback from over 350 stakeholders from the for-profit and not-for-profit sectors domestically and others, including standard setters, from across the globe.
"We were very excited to see the global participation in the Draft Framework's consultation process," said Ms. Mezon. "There was also extensive feedback received from Canadians who the Framework can directly help – management, directors and users who select and develop or use performance measures."
In the end, the broad base of feedback resulted in significant support for the Framework and its proposals. The AcSB also considers this guidance to be complementary to guidance issued by securities regulators.
The AcSB will continue to actively support the application of the Framework through education and awareness activities. The Board is also keeping its conversations going with entities applying the Framework and will update as the environmental evolves.
Get more information on the first edition of the Framework for Reporting Performance Measures at FRASCanada.ca/acsb-framework.
About the AcSB
The AcSB supports informed economic decision making by maintaining frameworks that provide a basis for high-quality information about financial performance reported by Canadian private sector entities.
SOURCE Financial Reporting & Assurance Standards Canada
For further information: Daniella Girgenti, Communications Manager, Financial Reporting & Assurance Standards Canada, [email protected], (416) 204-3482