“We’re looking at non-GAAP measures,” said David Woodcock, chairman of the SEC’s new Financial Reporting and Audit Task Force, referring to companies’ customized measures that don’t comply with generally accepted accounting principles, or GAAP.
Mr. Woodcock, who was speaking at an American Institute of Certified Public Accountants conference, didn’t mention any specific companies that the task force is looking at. While other regulators have touched on some of the same issues in recent months, Mr. Woodcock’s comments are the first indication that the SEC is looking at these metrics with an eye toward possible enforcement cases.
‘Enforcement 40’ for 2020
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