Proposed framework for measurement and disclosure of the alternative performance measure prepared In accordance with non-GAAP accounting principles

Khalel, Mohamed Reda Abd El Fatah

doi:10.21608/aljalexu.2017.61813

Proposed framework for measurement and disclosure of the alternative performance measure prepared In accordance with non-GAAP accounting principles

Document Type : Original Article

Author

Mohamed Reda Abd El Fatah Khalel

Accounting Department Faculty of Commerce Alexandria University Alexandria Egypt

10.21608/aljalexu.2017.61813

Abstract

The research aims to develop a proposed framework for measurement and disclosure of the alternative performance measure prepared in accordance with the accounting principles other than generally accepted. The research analyzes and evaluates the concept of the alternative performance measure and its advantages and benefits (motives for disclosure) and criticism directed at it, and problems of measurement and disclosure of the measurement of alternative performance. The research concluded that a proposed measurement and disclosure framework for the alternative performance metric has been developed that has consistency and comparability to enhance the use of the benefits of disclosure and overcome criticism. Measuring and disclosing an alternative performance measure increases the quality of accounting disclosure and helps investors and other stakeholders understand the changes in business and their impact in the future.

Keywords