ESMA has released a statement addressing the implementation of IFRS 18, which introduces new requirements for the presentation and disclosure of financial information, particularly concerning performance measures. The statement specifically clarifies how IFRS 18 interacts with ESMA's Guidelines on Alternative Performance Measures (APMs), providing guidance on the definition, prominence, and presentation of APMs within financial statements. This aims to ensure a cohesive approach to financial reporting and enhance transparency for investors.

Companies preparing financial statements under IFRS will need to review their current practices regarding APMs in light of both IFRS 18 and ESMA's guidance. This includes understanding the new requirements for presenting performance measures, the definition of an APM, and the concept of prominence. While this is a statement and not a new regulation, compliance officers should ensure their reporting aligns with ESMA's interpretation to avoid potential scrutiny and ensure consistency in financial disclosures. The document also includes Q&As addressing specific scenarios related to interim financial statements and measures presented both inside and outside financial statements.