Management-defined performance measure
IFRS 18 requires a single note with specified information for measures meeting its definition, including a reconciliation to the most directly comparable specified IFRS subtotal or total and explanations of the measure. Certain measures specified by IFRS 18 are excluded. Check the detailed definition and the applicable examination-period requirements.
Worked example
A company publicly communicates an adjusted operating profit subtotal to explain management’s view of performance. If it meets the IFRS 18 definition, it discloses the required reconciliation and explanations in the notes.
Common mistake
Assuming every non-IFRS KPI is an MPM, or treating a management adjustment as a replacement for required IFRS subtotals.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Supporting | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |