Equities - DVFA

activities of the commissions
Financial Market Communication_
Commission on Non-Financials
2010 marked the culmination of nearly five years of work by the Commission on Non-
Financials. In the most recent version, the Commission identified the most important
non-financial indicators (key performance indicators) for financial investors in each of
the 114 sub-sectors of the Dow Jones classification.
The aim of the work is to identify ways to improve the quality of financial analysis.
Sector-specific definition of key performance indicators is meant to serve as a bridge
between investors and corporates. For the latter, it becomes easier to communicate
relevant information to investors. Investors themselves have rapid access to information
they need to make a proper assessment of the company. During the past year, the Commission
moved forward with its successful activities in this area. Building on the indicators
already identified, which were more or less general in nature, the team developed sectorspecific
indicators. Prior to publication, the resulting KPIs were reviewed by academic and
professional experts, whose constructive advice was used to further refine the indicators.
The Commission on Non-Financials will continue to face immense challenges in the
years ahead. Expansion of its work to other asset classes and advancement of the work
already accomplished will be of great importance. At the same time, the Commission will
seek to find ways for non-financial information to be taken into account for corporate
valuation – e.g. in the context of discounted cash flow models.
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