The use of non-GAAP financial measures by public companies continues to be a focus of attention for the U.S. Securities and Exchange Commission (“SEC”). In the last two decades, the SEC has observed the increased prevalence and prominence of non-GAAP financial measures in public company disclosures and voiced its concern about their potential to distort actual company performance and mislead the investing public.
Source: Understanding the Requirements Related to the Use of Non-GAAP Financial Measures