Investor Uses, Expectations, and Concerns on Non-GAAP Financial Measures

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

Supporting documents

Click link to download and view these files

Topics