On 16 February 2026, ESMA published Q&A 2775 under the Transparency Directive (Directive 2004/109/EC) and its Guidelines on Alternative Performance Measures (the "APM Guidelines").
The Q&A addresses the interaction of the APM Guidelines and IFRS 18 Presentation and Disclosure in Financial Statements becoming effective on 1 January 2027 while applying retrospectively (2026 financial year will already serve as the comparative period). The Q&A aims to clarify how issuers can remain compliant under both frameworks.
The APM Guidelines apply in relation alternative performance measures ("APMs") disclosed by issuers or persons responsible for prospectus when publishing regulated information and prospectuses or supplements. Examples of regulated information are management reports disclosed to the market in accordance with the Transparency Directive and disclosures issued under the requirements of Article 17 of the Market Abuse Regulation (Regulation (EU) No 596/2014).
Specifically, the Q&A maps out the key conceptual and practical differences between Management-defined Performance Measures ("MPMs") as introduced by IFRS 18 and APMs. ESMA notes that the APM Guidelines are still fit for purpose and will continue to fully apply after IFRS 18 enters into force.
The Q&A should be read together with ESMA's Public Statement from 17 February 2026 entitled "Reshaping performance: Implementation of IFRS 18 Presentation and Disclosure in Financial Statements".
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