Jacob Frenkel Quoted in Financial Times Article on Companies' Accounting Adjustment Practices
Attorney Jacob Frenkel (Member, Washington DC) was recently quoted in the article “Beware the lure of non-standard numbers,” published by the Financial Times.
The article focuses on the increase use of companies using non-GAAP measures when reporting its financial results to investors. The Securities and Exchange Commission has taken a keen interest in non-GAAP reporting.
Last December, the SEC brought its first ever enforcement case on the subject of prominence against ADT, which was fined $100,000 for a March 2018 earnings release that used only adjusted numbers in the headline and highlights section and saved the GAAP numbers for much later.
“The case is a warning that if the way you report can be perceived as misleading, there will be an enforcement action,” says Jacob.
To read the full article (subscription required), please click here.
The article focuses on the increase use of companies using non-GAAP measures when reporting its financial results to investors. The Securities and Exchange Commission has taken a keen interest in non-GAAP reporting.
Last December, the SEC brought its first ever enforcement case on the subject of prominence against ADT, which was fined $100,000 for a March 2018 earnings release that used only adjusted numbers in the headline and highlights section and saved the GAAP numbers for much later.
“The case is a warning that if the way you report can be perceived as misleading, there will be an enforcement action,” says Jacob.
To read the full article (subscription required), please click here.
