New Rules To Address The Conditions for Use of Non-GAAP Financial Information & Requirements for SEC Earnings Releases

Overview: This article provides the information regarding the new rules adopted by SEC to address the conditions for use of Non-GAAP financial information under section 401(b) of Sarbanes-Oxley Act and the requirements companies have to furnish for earnings releases. This release adopts: New Regulation G, Amendments to Item 10 of Regulation S-K and Item 10 of Regulation S-B, Amendments to Form 20-F, and Amendments to Form 8-K. The new regulation and related amendments were adopted to address public companies' disclosure or release of financial information that is calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles or GAAP. Regulation G will require public companies that disclose or release these non-GAAP financial measures to include, in that disclosure or release, a presentation of the most directly comparable GAAP financial measure and a reconciliation of the disclosed non-GAAP financial measure to the most directly comparable GAAP financial measure. The amendments to Item 10 of Regulation S-K and Item 10 of Regulation S-B provide additional guidance to public companies that desire to include non-GAAP financial measures in their SEC filings. The amendments to Form 20-F are designed to incorporate into that form the amendments to Item 10 of Regulation S-K. The amendments to Form 8-K do not involve non-GAAP financial measures. Instead, they require public companies to furnish to the SEC earnings releases or similar announcements.

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Format: HTML | Date: Jan 2003 | Pages: 1