To enable CPAs and other finance professionals to evaluate and prepare non-GAAP measures and key metrics that are transparent, compliant, and aligned with regulatory guidance.

• An overview of SEC guidance on non-GAAP measures
• Reconciliation requirements and prominence of GAAP vs. non-GAAP measures
• SEC staff comments on non-GAAP measures
• Key performance indicators

Polia A. Nair, CPA, CFA, MBA

To enable CPAs and other finance professionals to evaluate and prepare non-GAAP measures and key metrics that are transparent, compliant, and aligned with regulatory guidance.

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

• An overview of SEC guidance on non-GAAP measures
• Reconciliation requirements and prominence of GAAP vs. non-GAAP measures
• SEC staff comments on non-GAAP measures
• Key performance indicators

Polia A. Nair, CPA, CFA, MBA