Non-GAAP measures – ramping up the rigour

The Canadian Securities Administrators (CSA) have published for comment Proposed National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure, which establishes disclosure requirements for issuers that disclose non-GAAP and other financial measures. We’ve covered this topic here many times before (certainly more than I intended to). In a nutshell, the main Canadian regulatory reference point at present…

Principles of disclosure – step one of…many, probably…

“IASB outlines steps to improve disclosures in financial statements,” announces a recent news release. Here’s how the release sums up those steps: “The International Accounting Standards Board (the Board) has today published a Discussion Paper that suggests principles to make disclosures in financial statements more effective. The Discussion Paper Disclosure Initiative—Principles of Disclosure seeks public feedback on…

More on non-GAAP measures, or: just shoot me now

The CFA Institute has issued two related papers on non-GAAP measures, Investor Uses, Expectations and Concerns on Non-GAAP Financial Measures (NGFMs) and Bridging the Gap- Ensuring Effective Non-GAAP and Performance Reporting. Here in part is how the first paper sums up its findings: “Our survey results establish that company-reported NGFMs are useful for investors who apply them…