Attempts by firms to give a more accurate picture of their financial performance by reporting the underlying profit may be misleading investors.
Accounting firm Deloitte surveyed 100 firms and found 87 of them referred to alternative profit measures in addition to the standard net profit after tax.
More firms are using underlying profit because international accounting rules have meant more volatile results, since they capture such things as changes in the value of assets.
The national technical partner at Deloitte, Denise Hodgkins, says in total, 214 different measures emerged, heightening the chances that investors cannot make meaningful comparisons with previous periods or similar firms.
She says there is no consistent measure of underlying profit.
Ms Hodgkins says the issue is whether a specific figure on underlying profit should be included in financial statements.
She says the Australian regulator issued an exposure draft saying they didn't think companies should provide an alternative profit measure in the financial statements at all, although they did consider that putting it in the annual report itself may be acceptable.
Ms Hodgkins says it would be useful for investors to have a defined method of calculation and would improve comparability.
But she says arguably that's what net profit after tax is.
Ms Hodgkins says 92% of underlying profit measures showed an improved result, either by increasing a profit figure, turning a loss into a profit or reducing a loss.
