IMA FRC comment letter in response to FASB’s Invitation to Comment—Financial Key Performance Indicators for Business Entitles

April 24, 2025

IMA’s Financial Reporting Committee (the Committee) issued a comment letter in response to the Financial Accounting Standards Board’s (FASB) Invitation to Comment—Financial Key Performance Indicators for Business Entities.

The Committee noted that the majority of its members expressed support of the prioritization of a project on Financial Key Performance Indicators (KPIs) in order to encourage consistency in reported Financial KPIs as they are widely reported and used by the investment community. However, some Committee members do not believe that the FASB should prioritize a Financial KPI project relative to, and over, other proposed projects.

The Committee believes that there should not be mandated KPI disclosures, but rather a voluntary disclosure with directional illustrative guidance. In addition, most Committee members believe that such voluntary disclosure should be presented outside of the audited financial statements, while some Committee members believe disclosures could be included in financial statements as supplemental information that is clearly labeled as unaudited.

Read the Comment Letter