IOSCO updates its statement on non-GAAP financial measures

Posted on March 23, 2026 by Editor

The International Organization of Securities Commissions (IOSCO) has issued an updated version of its Statement on Non-GAAP Financial Measures, originally published in 2016. The 2026 revision addresses a specific and timely development: the interaction between non-GAAP measures and the new category of management-defined performance measures (MPMs) introduced by IFRS 18 Presentation and Disclosure in Financial Statements.

The update clarifies that MPMs, though required to be disclosed in the notes to financial statements under IFRS 18, do not automatically become “GAAP measures” for the purposes of IOSCO’s Statement. When disclosed outside the financial statements, such as in earnings releases or management discussion and analysis, they remain subject to the full range of IOSCO’s expectations around definition, prominence, reconciliation and consistency.

The broader Statement reiterates that non-GAAP measures should be clearly defined, honestly presented, reconciled to comparable GAAP figures, and applied consistently over time.

With IFRS 18 coming into effect for annual periods beginning on or after 1 January 2027, this updated guidance arrives at a useful moment, helping issuers and regulators navigate the boundaries between what is required by accounting standards and where broader disclosure expectations still apply.

Read the updated Statement here.