FMA has released its final guidance note on the disclosure of non-GAAP financial information (or, information which is not presented in accordance with generally accepted accounting practice (GAAP) or is presented as an alternative to the statutory profit).

The guidance note is intended for issuers, their directors and preparers of financial information. It sets out FMA’s expectations on the use of non-GAAP financial information in corporate documents, such as transaction documents and market communications.

Following consultation on a draft version of the guidance note in May this year, FMA has:

  • added and removed paragraphs to clarify the definition of non-GAAP profit information and when the guidance applies;

  • clarified that GAAP does not necessarily apply to information presented outside financial statements, but that it is reasonable for users of financial information to expect that information to be presented in accordance with GAAP;

  • clarified as to what the guidance considers unbiased presentation; and

  • added an illustrative profit announcement that complies with the guidance note.

Further details of FMA’s responses to submissions it received on the draft guidance note are available here.

FMA will assess non-GAAP financial information disclosures against this guidance from 1 January 2013.