CSA Provide Updated Guidance On Non-GAAP Financial Measures

The Canadian Securities Administrators (CSA) have provided revised guidance on the use of non-GAAP financial measures aimed at ensuring that information disclosure by issuers does not mislead investors. An updated version of CSA Staff Notice 52-306 (Revised) Non-GAAP Financial Measures (Notice 52-306) was published on January 14, 2016 reflecting amendments to IAS 1 Presentation of Financial Statements (IAS 1) regarding additional subtotals presented in financial statements.

Notably, Notice 52-306 recognizes that an issuer's GAAP may require the presentation of additional subtotals in the financial statements when such presentation is relevant to an understanding of the issuer's financial position or financial performance as, for example, may be required by paragraphs 55 and 85 of IAS 1. Issuers who wish to include these additional subtotals in a press release or outside of the issuer's financial statements before the financial statements are filed on SEDAR should