Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p62
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 165685–168764

performance measures, public communications exclude oral communications, written transcripts of oral communications and social media posts.
B120 Management-defined performance measures relate to the same reporting period as the financial statements. Specifically, a subtotal:
(a) relating to interim financial statements but not to the annual financial statements can only be a management-defined performance measure in the interim financial statements; and
(b) relating to annual financial statements but not to interim financial statements can only be a management-defined performance measure in the annual financial statements.
B121 An entity shall consider only public communications related to the reporting period to identify management-defined performance measures for the reporting period, unless as part of its financial reporting process it routinely issues such public communications after the date of issue of its financial statements. If that is the case, an entity shall consider public communications related to the previous reporting period to identify management-defined performance measures for the current reporting period.
B122 However, a measure used in the public communications related to the previous reporting period is not required to be identified as a management-defined performance measure for the current reporting period if there is evidence that indicates it will not be included in the public communications to be issued relating to the current reporting period. If such a measure had been disclosed as a management-defined performance measure in the previous reporting period and is not identified as such for the current reporting period, that would be a change to, or a cessation of, a management-defined performance measure to which the disclosure requirements in paragraph 124 apply.

Subtotals similar to gross profit
B123 In accordance with paragraph 118(a), subtotals similar to gross profit are not management-defined performance measures. A subtotal is similar to gross profit when it depicts the difference between a type of revenue and directly related expenses incurred in generating that revenue. Examples include:
(a) net interest income;
(b) net fee and commission income;
(c) insurance service result;
(d) net financial result (investment income minus insurance finance income and expenses); and
(e) net rental income.

Presumption about communicating management's view
B124 Paragraph 119 states that a subtotal of income and expenses used in public communications outside its financial statements is presumed to communicate to users of financial statements management's view of an aspect of the financial performance of the entity as a whole. Applying paragraph 120, an entity is permitted to rebut that presumption if it has reasonable and supportable information available that demonstrates that:
(a) the subtotal does not communicate to users of financial statements management's view of an aspect of the financial performance of the entity as a whole (see paragraphs B125–B128); and
(b) the entity has a reason for using the