Mind The GAAP: Avoid Getting Tripped Up By New Non-GAAP Disclosure Requirements

The Canadian Securities Administrators (CSA) has, for the first time, proposed a set of rules to govern non-GAAP and other financial measures. These rules, which will replace guidance previously issued by the CSA, will require issuers to adhere to rigid disclosure requirements when publicly disclosing non-GAAP financial measures. The rules will also expand the universe of regulated financial measures requiring supplemental disclosure beyond traditional "non-GAAP financial measures." Although these proposed rules may change before being implemented, issuers should expect that whatever their final form, the new rules will require more detailed disclosure and additional time and resources to ensure compliance.