Non-GAAP financial measures: Handle with care
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Description
Abstract: For years, public companies have used non-GAAP financial measures to provide investors, analysts and other financial statement users with a clearer picture of their financial performance. In May 2016, the SEC updated its Compliance and Disclosure Interpretations (C&DIs) regarding non-GAAP measures. This article highlights the SEC’s guidance. A sidebar discusses a new non-GAAP tool for audit committees.
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