Page 368 - SBR Integrated Workbook STUDENT S18-J19
P. 368
Chapter 22
Example 4
Additional performance measures
Bluebird discloses an additional performance measure (APM) in its financial
statements called ‘underlying profit before tax’. The following is an extract
from its disclosure notes for the year ended 31 December 20X1:
$m
Loss before tax (6)
Impairment of plant and machinery 9
Foreign exchange losses on trade receivables 4
Restructuring costs 3
–––
Underlying profit before tax 10
–––
Bluebird discloses comparable information for the year ended 31 December
20X0, in which restructuring costs were also incurred. All sales are made on
credit and customers must pay within 90 days.
Discuss possible criticisms of the APM.
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