US - SEC guidance on non-GAAP financial measures

The US Securities and Exchange Commission (SEC) staff has issued Compliance and Disclosure Interpretations (C&DIs) on disclosure of non-GAAP financial measures. Among other things, the new guidance clarifies that the SEC does not discourage registrants from disclosing non-GAAP financial measures in filings with the SEC. For example, one of the new Q&A clarifies that there is no prohibition against disclosing a non-GAAP financial measure that is not used by management in managing its business. (Read the SEC Guidance on Non-GAAP Financial Measures issued on January 15, 2010.)