Overview
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What Drove the Increase in Use of Non-GAAP Financial Measures
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SEC Final Rule – Conditions for Use of Non-GAAP Financial Measures
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SEC Final Rule – Discussion of the Definition of Non-GAAP Financial Measures
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Course Description
A non-GAAP financial measure is a numerical measure of a registrant's historical or future financial performance, financial position, or cash flow.
What Drove the Increase in Use of Non-GAAP Financial Measures?
U.S. GAAP can be hard and sometimes difficult to interpret even for seasoned professionals with years of experience. A problem with GAAP is its emphasis on producing a single number, net income, that is supposed to be useful to the company, as well as its investors and creditors. But sophisticated investors don’t care about reported net income. They want to know its components to be able to distinguish operating items from nonoperating items, items that are likely to be recurring and which are likely to be nonrecurring.
This Online CPE course provides an overview of non-GAAP financial measures with a particular emphasis on comments from the SEC, the FASB, and 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 for these measures to ensure that an entity’s financial statements remain GAAP compliant and are not misleading.
This Accounting CPE course focuses on SEC Compliance & Disclosure Interpretations. This course also provides illustrative examples of SEC Comment Letters, Prominent presentation, and Tax impacts.
This Online Continuing Education course includes following key topics:
- What is a Non-GAAP Financial Measure?
- Why Do Regulators Care About Non-Financial Measures?
- What are NOT Non-GAAP Financial Measures?
- Where Do Non-GAAP Financial Measures Show Up?
- SEC Compliance & Disclosure Interpretations
- Regulation
Learning Objectives
- To differentiate between a GAAP financial measure and a non-GAAP financial measure
- To recognize examples of different types of non-GAAP financial measures
- To identify which SEC guidance is applicable to different types of non-GAAP financial measures
- To recognize disclosures within the scope of Regulation G
- To identify key requirements included within both Regulation G and Regulation S-K related to these measures