SEC Sends Not-Terribly-Veiled Warning About Bespoke Accounting Practices

Non-GAAP metrics are on notice.
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Self-correct those non-GAAP metrics, or Mary Jo White will personally do it for you.

“We are sending a message and we are going to continue talking about it,” said Mark Kronforst, chief accountant of the SEC’s corporation-finance division. There will be “an uptick” soon in the number of SEC comments to companies, he said, as concerns have mounted that non-GAAP metrics could mislead investors and the commission has devoted more attention to them.

“I think this next quarter will be a great opportunity for companies to self-correct,” Mr. Kronforst said, speaking at a meeting of an advisory group to the Public Company Accounting Oversight Board.

SEC Tightens Crackdown on ‘Adjusted’ Accounting Measures [WSJ]
Earlier: SEC Will No Longer Accept Stained Cocktail Napkins Covered In Scrawled Happy Faces And Exclamation Points As Profit Metric

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