Jacob Frenkel Quoted in Financial Times Article on Companies' Accounting Adjustment Practices

Attorney Jacob Frenkel (Member, Washington DC) was recently quoted in the article “Beware the lure of non-standard numbers,” published by the Financial Times.

The article focuses on the increase use of companies using non-GAAP measures when reporting its financial results to investors. The Securities and Exchange Commission has taken a keen interest in non-GAAP reporting.

Last December, the SEC brought its first ever enforcement case on the subject of prominence against ADT, which was fined $100,000 for a March 2018 earnings release that used only adjusted numbers in the headline and highlights section and saved the GAAP numbers for much later.

“The case is a warning that if the way you report can be perceived as misleading, there will be an enforcement action,” says Jacob.

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