Equally beneficial for management and the audit committee, PwC’s “Non-GAAP measures - The role of the audit committee” provides a regulatory overview and illustrative examples of non-GAAP financial measures (as distinguished from KPIs, which are also addressed), along with guidance on whether, when, and how to develop and use such measures in a way that will mitigate the potential for investor criticism and SEC scrutiny. The resource suggests discussion topics for audit committees to facilitate the integrity of the company’s non-GAAP disclosures in the exercise of their oversight responsibilities.
See our prior reports: “Non-GAAP: SEC's Bricker Elaborates on Audit Committee Oversight Expectations”; “Enhancing Trust in and Reliability of Non-GAAP Measures & Disclosure”; and additional resources on our Financial Reporting page »Non-GAAP Reporting /Disclosure. This post first appeared in the weekly Society Alert!