SEC Top Focus Areas: Non-GAAP Financial Measures
Author: Kelen Camehl
| CPE Credit: |
1 hour for CPAs |
This course provides an overview of non-GAAP financial measures with a particular emphasis on comments from the SEC, the FASB, as well as comment letter analysis from several of the Big 4 accounting firms. Non-GAAP financial measures continue to rank at the top of the most frequent comment letters issued by the SEC. As a result, it’s important to understand the guidance with respect to these measures to ensure that a company’s financial statements remain GAAP compliant and are not misleading.
Publication Date: April 2024
Topics Covered
- Non-GAAP financial measures
- Examples of non-GAAP financial measures
- Free cash flow
- Constant currency
- Issues with GAAP-Based financial statements
- Regulation G
- Regulation S-K
- Unreasonable effort considerations
- Boiler plate concerns
- Misleading concerns
- Prominent presentation
Learning Objectives
- Recognize how to distinguish between a GAAP and a non-GAAP financial measure
- Recognize examples of different types of non-GAAP financial measures
- Identify SEC guidance applicable to types of non-GAAP financial measures
- Recognize disclosures within the scope of Regulation G and Regulation S-K
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Accounting (1 hour)
Program Prerequisites
None
Advance Preparation
None
