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<p>We outline the management performance measures (MPMs)' boundaries based on the upcoming introduction of MPM's definition to International Financial Reporting Standards (IFRS). The literature investigates business performance measures concentrating on managers' needs, while IFRS aims to provide financial information to external users who provide resources to the entity. This indicates a gap between how performance metrics have been investigated so far and how IFRS will adopt them. We used analysis of the exposure draft of the planned standard together with working materials developed in the consultation process. Further, a case study is presented. Results show that the scope of MPM to be introduced to IFRS is limited compared to the broad spectrum of performance measures presented in the literature. We contribute by showing the avenues for future performance measures research using signalling and agency theory and by indicating the limited scope of MPMs and thus bound prospects for using them for a full assessment of the entity‘s performance.</p>
</abstract>

We outline the management performance measures (MPMs)' boundaries based on the upcoming introduction of MPM's definition to International Financial Reporting Standards (IFRS). The literature investigates business performance measures concentrating on managers' needs, while IFRS aims to provide financial information to external users who provide resources to the entity. This indicates a gap between how performance metrics have been investigated so far and how IFRS will adopt them. We used analysis of the exposure draft of the planned standard together with working materials developed in the consultation process. Further, a case study is presented. Results show that the scope of MPM to be introduced to IFRS is limited compared to the broad spectrum of performance measures presented in the literature. We contribute by showing the avenues for future performance measures research using signalling and agency theory and by indicating the limited scope of MPMs and thus bound prospects for using them for a full assessment of the entity‘s performance.

Boundaries of management performance measures (MPMs) disclosed in primary financial statements prepared in accordance with new standard planned to supersede IAS 1

Department of Business Informatics and International Accounting

Central European Economic Journal

This work is licensed under the Creative Commons Attribution 4.0 International License.

We outline the management performance measures (MPMs)' boundaries based on the upcoming introduction of MPM's definition to International Financial Reporting...

Boundaries of management performance measures (MPMs) disclosed in primary financial statements prepared in accordance with new standard planned to supersede IAS 1

Publicado en línea: 05 ene 2024

Páginas: 1 - 16

DOI: https://doi.org/10.2478/ceej-2024-0001

Palabras clave
management performance measures, MPM, performance measurement, IAS 1, IFRS 18, signalling theory, agency theory

© 2024 Ewa Wanda Maruszewska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Boundaries of management performance measures (MPMs) disclosed in primary financial statements prepared in accordance with new standard planned to supersede IAS 1

Publicado en línea: 05 ene 2024

Páginas: 1 - 16

DOI: https://doi.org/10.2478/ceej-2024-0001

Palabras clavemanagement performance measures, MPM, performance measurement, IAS 1, IFRS 18, signalling theory, agency theory

© 2024 Ewa Wanda Maruszewska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Palabras clave
management performance measures, MPM, performance measurement, IAS 1, IFRS 18, signalling theory, agency theory