Český finanční a účetní časopis 2026(2):15-42
Disclosure of Alternative Performance Measures in European Companies from the Health Care Sector
In this paper, I examine the discipline of companies in disclosing supplementary information about alternative performance measures (APMs) presented in their annual reports. I investigate the nature of disclosed measures, their location within the annual reports, discipline in differentiating unaudited APMs from audited GAAP measures, signposting to the reconciliation of APMs to their closest GAAP measures and significance of non-GAAP earnings adjustments. I use qualitative methods on hand-collected data from 40 European companies in the Health Care sector included in the MSCI EAFE ETF as of March 2023. I find that APMs are used by 95% of the companies but only 20 % of them differentiate APMs from other measures. 75 % of the companies reported non-GAAP earnings with 30 % making significant adjustments.
Keywords: Alternative performance measures, non-GAAP performance measures, financial reporting
JEL classification: M4
Published: September 21, 2026 Show citation
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