While the number of comment letters the commission sends to filers has waned drastically, the proportion of letters focused on non-GAAP metrics has shot up.
Sometimes, the commission’s metrics guidance works against the interests of financial-statement users, a capital markets expert says.
But the SEC should continue trying to boost transparency and comparability in reporting: CFA Institute official.
There's an awful lot of gray area around the topic of what companies should or shouldn't do in their presentations of the unofficial metrics.
Several recent actions leave no doubt that non-GAAP financial measures are in the commission's crosshairs, and companies are taking notice.
