Non-GAAP Financial Measure Explained NON-GAAP NON-GAAP FINANCIAL MEASURES INTRODUCTION accounting scandals at Enron and Worldcom in the early 2000s, sought to resulting measure (called \U2018adjusted net income\U2019, for example) from operations) and \U2018core earnings\U2019 (particularly for mortgage REITs). MFFO is a WHEN DO REGULATION G AND ITEM 10(E) OF \U2022 the non-GAAP financial measure relates to the GAAP used in the registrant\U2019s a non-GAAP financial measure, that non-GAAP financial earnings release exhibit to the Form 8-K: continued to present such non-GAAP financial measures in THE UPDATED C&DIS Equal or greater prominence presentation of GAAP related to adjustments is as follows: GAAP financial measures such as EBITDA and operating that included forward-looking non-GAAP financial measures in their earning disclosures accordingly. NAREIT\U2019s FFO definition, then the same should be called \U2018adjusted FFO\U2019 or a EFFECTIVE DISCLOSURE CONTROLS, AUDIT interpretive questions. Audit committees and management should also keep In addition, in September 2016, the SEC charged the former principles to calculate non-GAAP earnings. ENDNOTES: 14. See Wesley R. Bricker, Deputy Chief Accountant, Mary Jo White, Chair, Securities and Exchange Commission, SEC Cracking Down on Fuzzy Math in Company Earnings, ABOUT THE AUTHOR http://www.inhousedigitalpublishing.com
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