The Securities and Exchange Commission’s enforcement division is looking closely at violations of rules governing custom accounting metrics, said Michael Maloney, chief accountant of the division.
The SEC this year stepped up its campaign to rein in the use of accounting metrics that don’t conform to the U.S. Generally Accepted Accounting Principles, known as non-GAAP figures. The SEC’s division of corporation finance has up until recently led that effort, issuing new compliance guidelines and following up with an increased number of letters critiquing companies that don’t comply with the rules.
‘Enforcement 40’ for 2020
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