Question 16

Non-IFRS financial measures reported by public companies to its financial statement users may be helpful in decision-making but caution must be exercised because

of the independence issue, given that the same auditors audit the financial statements and the non-IFRS financial measures.

management defines the measures based on their expertise, judgement and financial reporting needs.

tax rules affect the non-IFRS financial measures.

the criteria established in the accounting standards for the purposes of calculating non-IFRS financial measures are open to interpretation.