The Financial Markets Authority ("FMA") has this week released its final guidance note on the disclosure of nonGAAP financial information. Information is "nonGAAP" if it is financial information used in corporate documents such as transaction documents and market communications where that financial information is not presented in accordance with general accepted accounting practice.

The guidance note outlines the FMA's expectations to ensure that issuers communicate their financial information to investors and other stakeholders in a way that minimises the potential for it to be misleading.

The note also provides guidance on nonGAAP terms such as 'underlying earnings', 'normalised profit' and 'adjusted earnings' so that the FMA can clarify the minimum standard it expects when such information is outlined.

The FMA will begin using the guidance when reviewing nonGAAP financial information disclosures from 1 January 2013.

The guidance note, including a practical example of an announcement using nonGAAP profit information, can be found here.