Scrutiny over corporate use of non-GAAP accounting measures is still causing some heartburn for public companies, but the Securities and Exchange Commission is signaling it is encouraged by improvements in recent quarters.
At a conference on current financial reporting issues by Financial Executives International, SEC staff members indicated most companies have responded to SEC initiatives to bring non-GAAP accounting back inside the guardrails of what’s permitted for public companies. “We’ve seen a number of companies have made changes,” said Wes Bricker, interim chief accountant at the SEC. “We’ve seen changes in the prominence of GAAP and non-GAAP measures,” suggesting the SEC’s guidance has been effective.
