FASB Financial Key Performance Indicators for Business Entities Proposal

Published: Apr 16, 2025

TXCPA’s PSC told FASB that Financial KPI standard-setting isn’t a priority, supporting optional standardized definitions but opposing industry-specific KPIs and adjustments outside SEC non-GAAP rules.

The TXCPA’s Professional Standards Committee (PSC) responded to the FASB’s call for comments on Financial KPIs, stating that the project isn’t a high priority since non-GAAP disclosures already meet user needs. If pursued, the PSC supports optional, standardized definitions for common KPIs (like EBIT and Free Cash Flow), but oppose industry-specific measures due to complexity. The committee also recommends banning adjustments to GAAP KPIs unless SEC non-GAAP rules are followed and do not support Approach 2.

View invitation to comment here. View TXCPA PSC comment letter here.

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