Unique measure of performance

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FRS 3, Reporting Financial Performance, requires that earnings per share should be calcu- lated on the profit after tax, minority interest and extraordinary items. FRS 3 permits an additional measure of earnings per share to be disclosed provided it is presented on a consistent basis over time and reconciled to the amount required by the standard. There should also be an explanation of the reasons for calculating the additional version.

As a result, there is no longer a unique measure of performance. Is this a good thing and what problems might this give preparers and users of financial statements?

Reference no: EM13954517

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