Non-GAAP Measures, Metrics & Disclosures Self-Study Webinar
Overview
Non-GAAP financial measures continue to receive significant scrutiny from regulators, investors, and analysts as companies seek to provide additional insight into performance and operational results. This self-study webinar provides a practical overview of non-GAAP metrics, key performance indicators (KPIs), related disclosure expectations, SEC comment letter trends, and common enforcement and compliance risks. Participants will gain insight into:
- Common types of non-GAAP measures, their intended use, and key disclosure considerations
- SEC staff guidance, comment letter trends, and regulatory expectations related to non-GAAP reporting
- Practical approaches for evaluating KPIs, improving disclosures, and reducing compliance risk
Objective
To provide CPAs and other finance professionals with a practical understanding of non-GAAP measures and related SEC disclosure requirements, enabling them to better assess reporting practices, strengthen compliance, and respond to evolving regulatory expectations.
DETAILED LEARNING OBJECTIVES
• Identify the reconciliation requirements for Non-GAAP financial measures under Regulation G
• Recognize the importance of presenting GAAP measures with equal or greater prominence than Non-GAAP measures
• Understand how the SEC evaluates and addresses potentially misleading Non-GAAP disclosures
• Identify examples of Non-GAAP financial measures, such as EBITDA and Adjusted Operating Margin
• Distinguish GAAP-compliant measures, such as revenue recognized per GAAP, from Non-GAAP measures
• Understand the SEC’s emphasis on consistent application of Non-GAAP measures across reporting periods
• Recognize how adjustments to Non-GAAP measures and KPIs should be disclosed transparently, including explanations of changes between periods
• Understand the SEC’s disclosure requirements for KPIs, including clear definitions, management use, and investor relevance
• Recognize what information is not mandatory, such as comparisons to industry benchmarks
• Identify practices deemed misleading by the SEC, such as excluding non-recurring charges while including non-recurring gains
• Learn the importance of reconciling Non-GAAP measures to the most comparable GAAP measures to enhance investor understanding
Emphasis
- Overview of non-GAAP measures:
– Historical trends
– Definitions and examples
– Foreign private issuers
– Performance measures vs. liquidity measures - SEC staff guidance on non-GAAP measures:
– Reminders from the SEC Division of Corporate Finance Disclosure Review Program
– Compliance and disclosure interpretations
– SEC staff comment letter process - Key performance indicators
- Prominence requirements and presentation considerations
- Common SEC disclosure deficiencies and enforcement themes
Speakers
Jeremiah Saunders, Professional Practice Principle, SEC Services
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