As investor relations and corporate communications officers gear up for the summer round of quarterly reporting, the process promises to be more harried than usual as a result of heightened scrutiny by the Securities and Exchange Commission of non-GAAP reporting. Many companies will grapple with revisions to the wording and structure of their earnings releases. Others may need to significantly revise the template they have used for years.
Here are five Dos and Don’ts for making sure your reporting conforms with the new SEC Compliance and Disclosure Interpretations regarding the use of non-GAAP financial measures without distracting from a true financial picture.
1) Don’t Overreact.
Non-GAAP metrics have gotten a bad name due to blatant abuse by a small number of…