‘Profit, performance, perception’: a research into the use of alternative performance measures in the European Union

This thesis concludes that the reporting of alternative performance measures enriches the financial information and that concerns in relation to strategic reporting behavior do not justify imposing restrictions on the use of alternative performance measures. Prescribing the reporting of both a normalized measure and a measure that excludes depreciation and amortization by all companies in the EU would be a more appropriate response than forbidding or restricting the use thereof. This would avoid strategic motives affecting the type of performance measures that are provided to the users of financial statements while at the same time ensuring that relevant information continues to be provided to them.