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DOI: 10.15862/22FAOR325 (https://doi.org/10.15862/22FAOR325)

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Sheshnev M.S. Performance indicators and new approaches to ensuring the transparency and comparability of financial information. Russian journal of resources, conservation and recycling. 2025; 12(s3). Available at: https://resources.today/PDF/22FAOR325.pdf (in Russian). DOI: 10.15862/22FAOR325

Performance indicators and new approaches to ensuring the transparency and comparability of financial information

Sheshnev Matvey Sergeevich
Financial University under the Government of the Russian Federation, Moscow, Russia
E-mail: 223159@edu.fa.ru; msheshnev@list.ru

Academic adviser: Ermakova Marina Nikolaevna
Financial University under the Government of the Russian Federation, Moscow, Russia
E-mail: mnermakova@fa.ru

Abstract. The entry into force of the new International Financial Reporting Standard (IFRS) 18 «Presentation and Disclosure in Financial Statements» marks a transition to a qualitatively new level of transparency and comparability of corporate reporting. The subject of this study is the requirements for the disclosure of Management-defined Performance Measures (MPMs) and the methodological approaches to ensuring the comparability of alternative indicators of financial performance. The paper examines the changes associated with the introduction of IFRS 18, systematizes performance indicators by functional purpose and analytical significance, characterizes the system of EBITDA-derived indicators used by stakeholders, and conducts a comparative analysis of the methodologies for calculating adjusted EBITDA based on the public reporting of four oil and gas companies. Particular attention is paid to the formalization of the requirements for disclosing MPMs in a single audited note and to the remaining space for management judgment in identifying one-off and non-recurring items. Based on the mandatory quantitative data of reconciliation tables, the author proposes the concept of an «objectivity index» that allows for a quantitative assessment of the reliability of management adjustments through intermediate indices of consistency, bias, comparability with the industry, and detail of description, and also develops a unified list of adjustments for normalizing adjusted EBITDA. The results of the study indicate that different calculation formulas are hidden under the same indicator name in company practice, which confirms the need to unify the methodology. The practical significance of the work is determined by the applicability of the proposed normalization algorithm and the objectivity index by investors, analysts, and preparers of financial statements in the transition to IFRS 18.

Keywords: IFRS; performance indicators; EBITDA; objectivity index; corporate reporting; transparency; comparability of financial information

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