Regulatory Alerts2020-02-13
Regulation 52-112 respecting Non-GAAP and Other Financial Measures Disclosure
Securities regulators in Canada have issued Regulation 52-112 to standardize the disclosure of non-GAAP financial measures, non-GAAP ratios, and other specified financial metrics by reporting issuers. The regulation mandates that issuers provide quantitative reconciliations to the most comparable GAAP measures, ensure non-GAAP metrics are not presented with greater prominence than GAAP equivalents, and include explanatory disclosures regarding composition and usefulness to investors. Additionally, the rule establishes specific labeling and presentation requirements for forward-looking non-GAAP information, total of segments measures, capital management measures, and supplementary financial measures.
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