The common, and at times creative, use of “non-GAAP” financial reporting has come under scrutiny before by some, including the U.S. Securities and Exchange Commission (SEC). While not technically prohibited by SEC rules, the SEC’s attention to non-GAAP measures is ramping up, with senior SEC staff sending out warning signals over the last several years. Here is more information on enforcement actions taken by the SEC regarding non-GAAP measures.
