SEC chief accountant warns against mischief in non-GAAP reporting
In a speech today, Wesley Bricker, the chief accountant at the SEC, warned accountants that the SEC is keeping a watch on non-GAAP reporting. He stated that SEC rules require companies to have disclosure controls and procedures, including a policy that addresses how any changes in the non-GAAP measure will be reported and how corrections of errors will be evaluated. He also warned that the SEC is keeping a close watch on how companies are dealing with the new accounting standards like revenue recognition and leasing. The first 10-Q quarterly filings under the new standard have been recently filed with the SEC. Some may recall that the former CFO and Chief Accounting Officer of American Realty Capital Partners, a REIT, were convicted of criminal charges related to fraudulent non-GAAP disclosures.
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