Search results for "non-gaap"

Pondering the SEC’s Next Move on Non-GAAP: Thoughts From Audit Analytics & The Analyst’s Accounting Observer

Our friends at Audit Analytics, who do some really great work with audit and accounting firm data, compiled data on SEC comment letters sent to companies on their non-GAAP earnings presentations in recent years. We put our heads together to surmise what might lie ahead when the SEC’s Division of Corporation Finance makes good on…

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Valeant’s Lessons about Non-GAAP Reporting Pitfalls

Valeant Pharmaceuticals and non-GAAP reporting: two topics that the press can’t seem to get enough of. They’re the peanut butter and chocolate of the financial world for journalists. It would be almost negligent to not examine the lessons that Valeant might offer about the over-reliance on mongrel metrics. At the risk of beating a horse…

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Volume 25, No. 4: Wonder Bread: Non-GAAP Earnings Keep Rising in the S&P 500

And it’s a lot of dough; you’d think investors would be full by now. They’ve long made adjustments to earnings because generally accepted accounting principles give firms accounting choices leading to differences in reported income between two companies, even on a full-GAAP basis. Investors and analysts try to compensate for those differences when they can….

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Chief Accountant Schnurr on Non-GAAP Earnings

James Schnurr, the SEC’s chief accountant, spoke at the 12th Annual Life Sciences Accounting and Reporting Congress in Philadelphia on Tuesday. Most of his remarks dealt with the new revenue recognition standard becoming effective in 2018, a standard that will be a complex one for life sciences companies to apply. Also of interest to life…

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Non-GAAP Earnings: SEC Drumbeats Are Getting Louder

Non-GAAP earnings presentations have been flourishing for years. Why? Possible reasons: sometimes they’re actually useful; companies like showing them because they’re generally more upbeat than straight GAAP presentations; the SEC’s Regulation G provides a cozy, easily-complied-with safe harbor; a general belief by investors that accounting figures are not telling the right story, aggravated by managers…

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Volume 23, No. 11: Non-GAAP Earnings: How They Have Grown

     Non-GAAP earnings are a double-edged sword. When they cut on the good side, they scrape away the one-time events obscuring a firm’s operating performance: items like asset write-downs and restructuring charges provide much information about management stewardship of a firm over the long run, but their recognition hides the firm’s quarterly performance when…

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