The use of alternative performance measures and the application of ESMA guidelines in the PSI 20 INDEX

Detalhes bibliográficos
Autor(a) principal: Damásio, Eduardo Manuel Novo
Data de Publicação: 2018
Tipo de documento: Dissertação
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10071/18442
Resumo: In 2015, the European Securities Markets Authority published its Guidelines on Alternative Performance Measures (APMs). These Guidelines aim to improve the transparency, comparability, reliability and comprehensibility of financial measures not defined by the applicable financial framework. The Guidelines became effective in Portugal in July 2016. The National Competent Authority responsible for the supervision of securities markets in Portugal, Comissão do Mercado de Valores Mobiliários, has incorporated the Guidelines on APMs into its supervisory practices. Therefore, issuers with securities admitted to trading on the Portuguese regulated market must make every effort to comply with the Guidelines when disclosing APMs in management reports, prospectuses and/or press releases. The Guidelines set out principles regarding the presentation (such as labels, prominence, neutrality, comparatives and consistency) and the disclosure (definitions, reconciliations and explanations) of APMs. This study aims to provide an illustration regarding the use of APMs by issuers in the PSI 20 Index and to assess their level of compliance with the Guidelines in press releases and management reports. This study reveals widespread use of APMs by all issuers in the PSI 20 Index when communicating their performance, in management reports, financial statements as well as in press releases. When analysing the use of APMs by sector, it was observed that issuers in the financial sector use more APMs, on average, than issuers in other sectors and Communications and Materials Sectors use fewer APMs. Findings of this study demonstrate that there is still room for improvement in the level of compliance by issuers in the PSI 20 Index with the APMs Guidelines, in particular in the context of press releases. Principles regarding the explanations, prominence and reconciliations were the least complied with while comparatives, consistency and neutrality the most complied with. The study also provides examples of incorrect application of the principles of the Guidelines enabling issuers to improve the quality of their reporting and the NCA with detailed analysis by issuer which may prompt enforcement.
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spelling The use of alternative performance measures and the application of ESMA guidelines in the PSI 20 INDEXAlternative performance measuresESMA guidelinesPSI 20 indexAPMsNon-GAAPFinançasIndicadores de desempenhoÍndice PSI20CMVM Comissão do Mercado de Valores MobiliáriosPortugalIn 2015, the European Securities Markets Authority published its Guidelines on Alternative Performance Measures (APMs). These Guidelines aim to improve the transparency, comparability, reliability and comprehensibility of financial measures not defined by the applicable financial framework. The Guidelines became effective in Portugal in July 2016. The National Competent Authority responsible for the supervision of securities markets in Portugal, Comissão do Mercado de Valores Mobiliários, has incorporated the Guidelines on APMs into its supervisory practices. Therefore, issuers with securities admitted to trading on the Portuguese regulated market must make every effort to comply with the Guidelines when disclosing APMs in management reports, prospectuses and/or press releases. The Guidelines set out principles regarding the presentation (such as labels, prominence, neutrality, comparatives and consistency) and the disclosure (definitions, reconciliations and explanations) of APMs. This study aims to provide an illustration regarding the use of APMs by issuers in the PSI 20 Index and to assess their level of compliance with the Guidelines in press releases and management reports. This study reveals widespread use of APMs by all issuers in the PSI 20 Index when communicating their performance, in management reports, financial statements as well as in press releases. When analysing the use of APMs by sector, it was observed that issuers in the financial sector use more APMs, on average, than issuers in other sectors and Communications and Materials Sectors use fewer APMs. Findings of this study demonstrate that there is still room for improvement in the level of compliance by issuers in the PSI 20 Index with the APMs Guidelines, in particular in the context of press releases. Principles regarding the explanations, prominence and reconciliations were the least complied with while comparatives, consistency and neutrality the most complied with. The study also provides examples of incorrect application of the principles of the Guidelines enabling issuers to improve the quality of their reporting and the NCA with detailed analysis by issuer which may prompt enforcement.Em 2015, a Autoridade Europeia dos Valores Mobiliários e dos Mercados emitiu Orientações sobre Indicadores Alternativos de Desempenho (IAD). As Orientações que entraram em vigor em Julho de 2016 em Portugal, visam promover a utilidade e a transparência de IADs incluídos em relatórios de gestão, prospectos e/ou press releases.A autoridade competente responsável pela supervisão do mercado de valores mobiliários em Portugal, a Comissão do Mercado de Valores Mobiliários, declarou a sua aderência com as Orientações e incorporou-as nas suas práticas de supervisão. Porquanto, emitentes com valores mobiliários admitidos à negociação em mercado regulamentado devem desenvolver todos os esforços para dar cumprimento às Orientações. As Orientações estabelecem princípios relativos à apresentação (tais como denominações, relevo e destaque, neutralidade, comparativos e coerência) e à divulgação (definições, conciliações e explicações) de IADs. Este estudo tem por objectivo aferir a utilização de IADs e o cumprimento das Orientações em press releases e relatórios de gestão pelo Índice PSI 20. O estudo revela uma utilização universal de IADs pelo PSI 20 nos relatórios de gestão, demonstrações financeiras e em press releases. Ao analisar os resultados por sector, foi observado que, em média, os emitentes pertencentes ao sector financeiro utilizam mais IADs, e que os emitentes incluídos nos sectores de Comunicações e Materiais são os que utilizam menos. O estudo conclui que o PSI 20 apresenta um nível de cumprimento deficitário das Orientações, em particular no que concerne a press releases. Ao analisar o cumprimento dos emitentes por categorias de princípios verifica-se que os princípios relativos a explicações, destaque e relevo, e conciliações são os que apresentam um nível mais baixo de cumprimento, enquanto que os princípios referentes a comparativos, coêrencia e neutralidade os níveis mais elevados. O estudo também incluí exemplos específicos que demonstram uma aplicação incorrecta dos princípios das Orientações permitindo aos emitentes melhorar o seu reporte financeiro e, à autoridade competente, atuar de modo a corrigir os problemas detectados.2021-11-15T00:00:00Z2018-11-16T00:00:00Z2018-11-162018-11info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfapplication/octet-streamhttp://hdl.handle.net/10071/18442TID:202135160engDamásio, Eduardo Manuel Novoinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:36:50Zoai:repositorio.iscte-iul.pt:10071/18442Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:16:47.329002Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The use of alternative performance measures and the application of ESMA guidelines in the PSI 20 INDEX
title The use of alternative performance measures and the application of ESMA guidelines in the PSI 20 INDEX
spellingShingle The use of alternative performance measures and the application of ESMA guidelines in the PSI 20 INDEX
Damásio, Eduardo Manuel Novo
Alternative performance measures
ESMA guidelines
PSI 20 index
APMs
Non-GAAP
Finanças
Indicadores de desempenho
Índice PSI20
CMVM Comissão do Mercado de Valores Mobiliários
Portugal
title_short The use of alternative performance measures and the application of ESMA guidelines in the PSI 20 INDEX
title_full The use of alternative performance measures and the application of ESMA guidelines in the PSI 20 INDEX
title_fullStr The use of alternative performance measures and the application of ESMA guidelines in the PSI 20 INDEX
title_full_unstemmed The use of alternative performance measures and the application of ESMA guidelines in the PSI 20 INDEX
title_sort The use of alternative performance measures and the application of ESMA guidelines in the PSI 20 INDEX
author Damásio, Eduardo Manuel Novo
author_facet Damásio, Eduardo Manuel Novo
author_role author
dc.contributor.author.fl_str_mv Damásio, Eduardo Manuel Novo
dc.subject.por.fl_str_mv Alternative performance measures
ESMA guidelines
PSI 20 index
APMs
Non-GAAP
Finanças
Indicadores de desempenho
Índice PSI20
CMVM Comissão do Mercado de Valores Mobiliários
Portugal
topic Alternative performance measures
ESMA guidelines
PSI 20 index
APMs
Non-GAAP
Finanças
Indicadores de desempenho
Índice PSI20
CMVM Comissão do Mercado de Valores Mobiliários
Portugal
description In 2015, the European Securities Markets Authority published its Guidelines on Alternative Performance Measures (APMs). These Guidelines aim to improve the transparency, comparability, reliability and comprehensibility of financial measures not defined by the applicable financial framework. The Guidelines became effective in Portugal in July 2016. The National Competent Authority responsible for the supervision of securities markets in Portugal, Comissão do Mercado de Valores Mobiliários, has incorporated the Guidelines on APMs into its supervisory practices. Therefore, issuers with securities admitted to trading on the Portuguese regulated market must make every effort to comply with the Guidelines when disclosing APMs in management reports, prospectuses and/or press releases. The Guidelines set out principles regarding the presentation (such as labels, prominence, neutrality, comparatives and consistency) and the disclosure (definitions, reconciliations and explanations) of APMs. This study aims to provide an illustration regarding the use of APMs by issuers in the PSI 20 Index and to assess their level of compliance with the Guidelines in press releases and management reports. This study reveals widespread use of APMs by all issuers in the PSI 20 Index when communicating their performance, in management reports, financial statements as well as in press releases. When analysing the use of APMs by sector, it was observed that issuers in the financial sector use more APMs, on average, than issuers in other sectors and Communications and Materials Sectors use fewer APMs. Findings of this study demonstrate that there is still room for improvement in the level of compliance by issuers in the PSI 20 Index with the APMs Guidelines, in particular in the context of press releases. Principles regarding the explanations, prominence and reconciliations were the least complied with while comparatives, consistency and neutrality the most complied with. The study also provides examples of incorrect application of the principles of the Guidelines enabling issuers to improve the quality of their reporting and the NCA with detailed analysis by issuer which may prompt enforcement.
publishDate 2018
dc.date.none.fl_str_mv 2018-11-16T00:00:00Z
2018-11-16
2018-11
2021-11-15T00:00:00Z
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