An entity’s ability to raise funds, perform and maintain its reputation can be at risk when performance measures reported, or key performance indicators, are not of quality.
The Accounting Standards Board (AcSB) developed the Framework to encourage conversations and actions for developing and reporting performance measures that are relevant for decision making.
Framework for Reporting Performance Measures, a voluntary guidance to enhance the relevance of financial reporting.
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. The Framework sets out what we think is best practice guidance for:
- selecting, developing and reporting performance measures; and
- implementing and maintaining controls and governance practices.
On June 14, 2018, the Board release the Framework in draft form. Stakeholders were asked to provide their feedback by way of an online survey, in-person discussions, and written responses.
After months of extensive consultations, the Board received feedback from over 350 stakeholders, from both the for-profit and not-for profit sectors, as well as from all parties involved in financial reporting – management, directors, providers, regulators, academics, and standard setters. Feedback from Canadians and others from across the globe help guide how the AcSB revised the Framework.
Read the In Brief for a detailed breakdown of respondents and their comments.
Framework for Reporting Performance Measures, a voluntary guidance to enhance the relevance of financial reporting, First Edition, December 2018
One-page Summary of the Framework
Video: Watch this easy-to-understand video to learn why the AcSB developed the Framework and how it can help you!
On-demand Webinar: Explains how the Framework is a useful tool and how it was developed
In Brief: A plain and simple overview of 2018 survey results on the AcSB's Framework for Reporting Performance Measures
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Globe & Mail, June 13, 2018: The momentum to clean up non-GAAP in Canada is growing
The AcSB will:
- continue to review and revise the Framework as needed, based on feedback and developments in practice and regulatory requirements;
- continue to interact with groups and associations interested in leveraging the Framework; and
- provide additional resources as needed.
Kelly Khalilieh, CPA, CA
Accounting Standards Board
Phone: 416 204 3453