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To the Point - FASB staff seeks input on research project on financial key performance indicators


Overview

Our publication discusses the FASB staff’s Invitation to Comment (ITC) on the FASB’s research project on financial key performance indicators (KPIs). The FASB’s research suggests there has been an increase in entities using financial KPIs in communications with investors. However, the financial KPIs used by entities may not be comparable due to the lack of standardized definitions of KPIs. The FASB staff is seeking feedback on, among other things, (1) whether financial KPIs should be defined and, if so, which ones should be defined and (2) whether an entity should be required or permitted to disclose those KPIs in its financial statements and, if so, when and for what type of entities. The ITC discusses two potential approaches. Comments are due by 30 April 2025.

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