Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p25
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
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Character Range: 65699–68730

the registered office);
(b) a description of the nature of the entity's operations and its principal activities;
(c) the name of the parent and the ultimate parent of the group; and
(d) if it is a limited-life entity, information regarding the length of its life.

Management-defined performance measures

Identification of management-defined performance measures
117 A management-defined performance measure is a subtotal of income and expenses that (see paragraphs B113–B122):
(a) an entity uses in public communications outside financial statements;
(b) an entity uses to communicate to users of financial statements management's view of an aspect of the financial performance of the entity as a whole; and
(c) is not listed in paragraph 118, or specifically required to be presented or disclosed by Australian Accounting Standards.
118 Subtotals of income and expenses that are not management-defined performance measures are:
(a) gross profit or loss (revenue minus cost of sales) and similar subtotals (see paragraph B123);
(b) operating profit or loss before depreciation, amortisation and impairments within the scope of AASB 136;
(c) operating profit or loss and income and expenses from all investments accounted for using the equity method;
(d) for an entity that applies paragraph 73, a subtotal comprising operating profit or loss and all income and expenses classified in the investing category;
(e) profit or loss before income taxes; and
(f) profit or loss from continuing operations.
119 An entity shall presume that a subtotal of income and expenses that it uses in public communications outside its financial statements communicates to users of financial statements management's view of an aspect of the financial performance of the entity as a whole, unless, applying paragraph 120, the entity rebuts the presumption.
120 An entity is permitted to rebut the presumption described in paragraph 119 and assert that a subtotal does not communicate management's view of an aspect of the financial performance of the entity as a whole, but only if it has reasonable and supportable information available that demonstrates the basis for the assertion (see paragraphs B124–B131).

Disclosure of management-defined performance measures
121 The objective of the disclosures for management-defined performance measures is for an entity to provide information to help a user of financial statements understand:
(a) the aspect of financial performance that, in management's view, is communicated by a management-defined performance measure; and
(b) how the management-defined performance measure compares with the measures defined by Australian Accounting Standards.
122 An entity shall disclose information about all measures that meet the definition of management-defined performance measures in paragraph 117 in a single note (see paragraphs B132–B133). This note shall include a statement that the management-defined performance measures provide management's view of an aspect of the financial performance of the entity