Reporting Performance Measures Enhancing the relevance of financial reporting

June 1, 2018 News

It’s time for leadership.

The Accounting Standards Board (AcSB) is stepping up to help enhance the relevance of financial information for all entities – from public and private companies, to not-for-profit organizations and pensions plans.

The Framework

On June 14, 2018, we issued the Draft Framework for Reporting Performance Measures.


Linda Mezon speaks at the 2018 FEI Canada Annual Conference on June 14, 2018 to launch the Framework.

This Framework is just the first step in responding to the needs of stakeholders – such as investors, contributors, lenders and other resource providers – about the performance measures reported by entities.

Current Status

The Draft Framework for Reporting Performance Measures closed for comment on October 1, 2018.

We are now deliberating the feedback we received through response letters, in-person and virtual discussion sessions, and a survey. 

We also thanked the Canadian Securities Administrators for their feedback. Read our response to their letter, outlining how as we are enhancing the quality of reporting for performance measures by working together.

Stay tuned for further information on the feedback received this Fall.

Download: Overview of the Framework for Reporting Performance Measures

Overview of the Framework for Reporting Performance Measures

Why do we need a Framework?

Financial statements provide a strong foundation for financial reporting. But there’s more information that users consider – including performance measures – when making investing, contributing, lending and other resource allocation decisions.

We’ve heard from stakeholders – investors, contributors, lenders and other resource providers to management, directors, and assurance providers.

There are concerns that we want to address:

  • The quality of performance measures being reported.
  • The lack of consistency, transparency and comparability of performance measures reported period to period.
  • The “expectation gap” about the governance practices of entities over how performance are developed and reported, and whether those measures are subject to assurance.
  • The limited guidance available on how to develop and report performance measures not usually subject to assurance.

What are performance measures?

Performance measures range from measures under GAAP to non-financial or operational measures. This Framework provides guidance on reporting performance measures outside of GAAP.

Download: Performance measures

Performance measures

About the Framework – Developing and Reporting a Performance Measure

An entity needs to look to its strategies, goals and objectives to identify its key activities – both those it has already done, and will do, to generate value.

These strategies, goals and objectives help identify the information an entity wants to report on – in addition to the information reported in its financial statements.

The Framework for Reporting Performance Measures provides guidance on how an entity can develop or construct a performance measure, a process broken down into principles or building blocks.

Download: Performance Measure Principles

Performance Measure Principles

Next Steps

The AcSB will:

  • issue a revised Framework in December 2018;
  • work with others to encourage application;
  • assist others in developing additional guidance, such as industry-based guidance and Q&As.


Rebecca Villmann, CPA, CA, CPA (Illinois)
Director, Reporting Initiatives & Research
Financial Reporting & Assurance Standards Canada
Phone: +1 (416) 204-3464