BC325 The IASB developed the disclosure requirements for management-defined performance measures to provide insight into management's view of an aspect of an entity's financial performance as a whole. Users of financial statements said information about management-defined performance measures is useful because it provides insight into how the business is managed, how management views the entity's financial performance, and the persistence of the entity's financial performance. Information about these measures is generally communicated outside the financial statements. However, users of financial statements raised concerns about the quality of the information provided about these measures.
BC326 The IASB agreed that management-defined performance measures can provide useful information about an entity's financial performance. Subtotals required by IFRS Accounting Standards provide useful information that is comparable between entities, and additional subtotals defined by management can
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