Non-GAAP financial measures (NGFMs) are a core part of how companies communicate their performance, and they are meant to supplement measures required by accounting standards (e.g., US GAAP/IFRS).
Episodes of abuses or misleading NGFMs reporting have recently been a source of popular commentary in media and also led to intense scrutiny from different securities regulators. This publication sheds light on investor uses, expectations, and concerns on NGFMs, informed by a survey of CFA Institute members—mostly buy-side analyst and portfolio manager respondents. In a follow-up publication, we will articulate actions required to improve communication of these measures and enhance the overall performance reporting framework.
Read the complete white paper at the link beneath Related Files