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Non-GAAP crackdown renders earnings process complex, poll says

Tammy Whitehouse | March 8, 2017

Investor relations officers say compliance with a crackdown on non-GAAP financial reporting has led to little investor or analyst reaction and only made the earnings release process unnecessarily long and complex.

That’s a key finding of a year-end survey by Edelman Financial Communications and Ipreo to gauge investor reaction to new guidance from the Securities and Exchange Commission meant to shore up non-GAAP reporting that had fallen outside permissible guardrails.

The SEC’s Division of Corporation Finance put a focus in 2016 on various ways companies had let their use of non-GAAP accounting measures in their financial communications get out of hand, most notably the placement and prominence of non-GAAP results in relation to GAAP-compliant results...

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