IOSCO Seeks Comment on Proposed Statement on Non-GAAP Financial Measures

IOSCO issued a proposed Statement on Non-GAAP Financial Measures, which sets out IOSCO's expectations for issuers with respect to their presentation of financial measures other than those prescribed by Generally Accepted Accounting Principles ("GAAP").

According to IOSCO, non-GAAP financial measures provide additional insight into an issuer's financial performance, financial condition and/or cash flow. IOSCO stated, however, that problems can arise when non-GAAP financial measures are presented inconsistently or defined inadequately, or when they obscure financial results that are determined in accordance with GAAP.

The proposed statement is "intended to assist issuers in providing clear and useful disclosure for investors and other users of non-GAAP financial measures, and to help reduce the risk that such measures are presented in a way that could be misleading." Comments are due by December 5, 2014.

See: Proposed Statement on Non-GAAP Financial Measures; IOSCO Request for Comment.