Monday, September 19, 2016

SEC is gearing up for next smackdown on bogus earnings numbers

Marketwatch reports:
The Securities and Exchange Commission is getting ready for the next step in its effort to crack down on the use by companies of customized numbers that the regulator says can mislead investors.

In May, the SEC’s Division of Corporation Finance confirmed it had established an internal task force to closely review the use of “non-GAAP” numbers -- those that do not comply with Generally Accepted Accounting Principles—and to check whether companies were responding to new guidance on those metrics that was issued on May 17.
No "Chicago style" accounting for you, unless you are a municipality or state government.