A guidance note on the disclosure of non-GAAP financial information (financial information that is not presented in accordance with generally accepted accounting practice) was issued by the Financial Markets Authority (the FMA) on 3 September 2012. The guidance note recognises that, although it is often appropriate or necessary to incorporate non-GAAP financial information in transaction documents and market communications, such information can potentially be misleading when presented alongside GAAP financial information.
The guidance note provides issuers, their directors and preparers of financial information with assistance in preparing and presenting non-GAAP financial information in such a way that is meaningful, includes the appropriate level of disclosure, and does not allow such information to enjoy undue prominence, emphasis or authority. Tables setting out guidance and explanations can be found in Sections C and D of the guidance note and an illustrative example of how to apply the guidelines is set out in Appendix 1 of the guidance note.
The FMA will use this guidance to assess non-GAAP financial information disclosures from 1 January 2013. Please click here to view a copy of the complete guidance note.