The use of non-GAAP financial measures by US public companies continues to attract scrutiny. As concern grows that non-GAAP measures are being employed in company disclosures to distort actual performance numbers and, in some cases, mislead the investing public, the SEC has stepped in.

In this exclusive report by Morrison & Foerster, and co-published with the International Financial Law Review, we examine the regulations relating to the use of non-GAAP financial measures, commonly used non-GAAP financial measures, the SEC’s guidance relating to the use of non-GAAP measures, comments issued by the SEC Staff on this subject, and what companies can do to revise their disclosures, earnings calls and other communications.