MPM governance

Bring management performance measures into a controlled disclosure model.

Identify management-defined performance measures and build reconciliations, disclosure controls, and templates for audit-ready reporting.

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Management performance measure disclosure note and reconciliation model

Primary audience

CFO office, FP&A, reporting lead

Core output

MPM register and reconciliation pack

Assessment lens

Measures, adjustments, controls

MPM governance

Identify, reconcile, and control adjusted performance measures.

This module creates a disciplined operating model for measures management uses publicly, including definitions, reconciliations, explanations, ownership, and review evidence.

Identification

MPM identification

Review annual reports, investor decks, earnings releases, board packs, and lender reporting to identify candidate management-defined performance measures.

MPM candidate register

Public-measure inventory

Definition log

Reconciliation

Reconciliation templates

Create repeatable templates that reconcile each measure to required IFRS or Ind AS subtotals and document adjustment logic.

Reconciliation workbook

Adjustment library

Period consistency check

Disclosure control

Disclosure control checklist

Define ownership, review points, data sources, approval evidence, and consistency controls for every MPM disclosure.

Control checklist

Owner matrix

Evidence pack

Measure review

The risky measures are often already in public use.

MPM readiness starts by locating adjusted measures across communication channels, then testing whether definitions, calculations, and explanations are controlled enough for the new disclosure requirements.

Adjusted profit, EBITDA, margin, cash earnings, segment and industry-specific performance measures.

Measures used in investor presentations, management commentary, press releases, and board reporting.

Recurring adjustments, one-off labels, tax effects, non-controlling interest effects, and comparative treatment.

Links between MPMs, segment reporting, compensation metrics, and covenant reporting.

Review and approval evidence for measure definitions, calculations, and narrative explanations.

MPM control lens

Show which measures are ready, exposed, or unresolved.

The MPM scorecard gives finance leaders a practical view of which measures can be supported, which require redesign, and which should be retired or reframed.

Definition discipline

Is each measure clearly defined and consistently calculated across periods and publications?

Improves consistency and auditability.

Reconciliation quality

Can each measure be reconciled to a required subtotal using controlled source data?

Reduces manual disclosure risk.

Narrative support

Does management have a clear explanation for why the measure communicates performance?

Strengthens disclosure credibility.

Approval ownership

Who owns calculation, review, approval, and final disclosure sign-off?

Creates repeatable governance.

MPM journey

Move from measure inventory to disclosure control.

Inventory measures

Capture every public and management-facing measure that may fall within the MPM analysis.

Assess candidates

Apply the MPM definition, identify exclusions, and document rationale for each measure.

Build templates

Prepare reconciliations, adjustment definitions, explanation language, and comparative-period support.

Embed controls

Assign owners, reviewer checks, approval gates, and evidence requirements for each reporting cycle.

MPM outputs

A governance pack for adjusted performance reporting.

The module creates the working files and control routines needed to explain management-defined performance measures with confidence.

MPM candidate and decision register

Public adjusted-measure inventory

MPM reconciliation templates

Adjustment definition library

Disclosure narrative and explanation checklist

Approval and evidence control pack

Next step

Control adjusted measures before they become disclosure pressure points.

Use this module when management measures are already visible in investor, board, or lender communication and need a stronger governance model.

MPM identification

Reconciliation templates

Disclosure control checklist

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