Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9733645 | Research in Accounting Regulation | 2005 | 24 Pages |
Abstract
The research also specifically addresses the impact of the SEC's recent guidance and the extent to which Regulation G has modified pro forma reporting behavior. Our findings indicate pro forma adjustments have continued to be systematically biased in recent years to show significantly higher earnings compared to GAAP earnings and that the magnitude of such differences is highly material. While SEC action, particularly Regulation G, appears to have greatly reduced the number of companies disclosing non-GAAP financial measures and has improved transparency, a significant number of companies continue to make adjustments that are likely of concern to the SEC.
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Social Sciences and Humanities
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Accounting
Authors
Nancy B. Nichols, Sidney J. Gray, Donna L. Street,