Rethinking Non-GAAP Financial Measures

Law360, New York (March 3, 2010, 4:29 PM EST) -- The U.S. Securities and Exchange Commission's Division of Corporation Finance recently revised its Compliance and Disclosure Interpretations relating to the use of non-GAAP financial measures in filings with the SEC and other public disclosures made by reporting companies.

The revised guidance is less restrictive and is expected to encourage greater use and disclosure of non-GAAP financial measures that comply with Regulation G and Item 10(e) of Regulation S-K.

Background

In 2003, the SEC adopted Regulation G and Item 10(e) of Regulation S-K. When a reporting company...
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