Performance statement: Coming together to shape the future
PwC's survey, 2007
With the FASB and IASB in the throes of a major review of the structure of performance reporting, this survey provides a timely review of what information investment professionals and corporate management require to assess performance. What data analyses are held to be critical? Is GAAP meeting their needs? What can management do to mitigate current informational shortfalls within the existing reporting framework? Is the proposed direction of travel of the standard setters likely to result in a performance statement that better meets user needs?
Key findings
- High degree of congruence between the views expressed by respondents
- The income statement is ranked as the most important of the primary statements
- Need to be able to distinguish “underlying” earnings from one-off events and the impact of the re-measurement of assets or liabilities
- The earnings number is useful and respondents largely agreed how it should be defined
- Non GAAP is held to be valuable, although ground rules should govern their use
- Key areas of divergence are tax reporting and how segments should be identified.
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