Staff members at the Securities and Exchange Commission are signaling to public companies that they still have concerns over uses of non-GAAP measures that seem to thumb their nose at GAAP.
At a springtime meeting of the Center for Audit Quality’s SEC Regulations Committee, staff members discussed with the committee concerns over non-GAAP financial measures that involve “individually tailored accounting principles.” These are non-GAAP measures that are calculated by, essentially, following a preferred or alternative method for arriving at a GAAP number.
