Recommendations on disclosure of nonfinancial performance measures

This paper summarizes comments of the Financial Accounting Standards Committee of the American Accounting Association on issues related to disclosure of nonfinancial performance measures. At the Committee's May 2001 meeting with the FASB, some Board members stated that an evaluation of academic research related to nonfinancial performance measures could be useful in the Board's future deliberations on performance reporting. The Committee took up the challenge and offers this overview of relevant academic research along with some preliminary recommendations on disclosure of nonfinancial performance measures.