CERTYNEX IFRS ACADEMY

Sylve SA publishes in its annual press release a "profit before exceptional items", a subtotal of income and expenses that conveys management's view of the performance of the entity as a whole. This subtotal is not required by IFRS 18 nor listed among the specified subtotals (case facts). How should it be characterised?

It is not a management measure, because it is calculated differently from operating profit, the specified subtotal of the statement of profit or loss.

It is a management-defined performance measure, since the conditions of the definition are met.

It is not a management measure, because it is published outside the financial statements.

It is a management measure on condition that it is presented in the statement of profit or loss.