Pay attention to Reg G updates

When a company publicly discloses information with a non-GAAP financial measure, Regulation G requires the disclosure to be accompanied and compared to a directly comparable GAAP measure. When non-GAAP measures are included in SEC filings, item 10(e) of Regulation S-K sets forth similar requirements. Both of these stemmed from Sarbanes Oxley.

These rules are relevant now because, as Fried Frank Harris Shriver and Jacobson notes, the SEC has tweaked its guidance to reflect what appears to be an attempt to allow for more flexibility in reporting. The previous guidance may have been too restrictive. This is not unlike the move from AS2 to AS5 in some regards. There were revisions in several key areas, including non-recurring items, real estate investment trusts, non-GAAP per share amounts, free cash flow measures, adjusted EBITDA, and more.

For more:
- here's the brief

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