Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, this week’s host, and I’m here today with Ryan Istre, an Audit Director and a member of the PKF Texas SEC team. Welcome to the Playbook Ryan.
Ryan: Thanks Jen, glad to be here.
Jen: So Ryan what are the hot topics that the SEC staff are looking into these days?
Ryan: That’s a good question Jen. So there are a lot of new accounting pronouncements that are coming up in the very near future but one of the hot topics that the SEC staff are looking into right now are non GAAP financial measures. Some of the items that have come out in recent comment letters relate to the prominence of which non GAAP measures are being displayed over GAAP measures, which we all know is a no-no per Regulation G.
And the other item that the SEC staff are looking into are forward-looking measurements; forward-looking disclosures about registrants. So the SEC staff have continued to emphasize the roles of both preparers and audit committees to ensure the appropriateness of these non GAAP financial measures. What the SEC has done recently to help clarify some of this guidance is issued a compliance and disclosure initiative which can be found at www.SEC.gov.
Jen: So where do we come into this in advising our clients?
Ryan: We will generally review all financial information that they file with the SEC and therefore we’re going to be able to advise them as to whether the non GAAP measures that they’re disclosing in their financials are appropriate in accordance with the SEC’s guidance.
Jen: Perfect. I’m going to get you back to talk a little bit more because I’m sure the SEC has got a lot more to say.
Ryan: Oh they do.
Jen: Perfect, thank you for being here Ryan.
Ryan: Thank you Jen.
Jen: For more about this topic visit our SEC desk on PKFTexas.com. This has been another Thought Leader Production brought to you by PKF Texas the Entrepreneur’s Playbook. Tune in next week for another chapter.