TORONTO — Provincial securities regulators across Canada are reviewing how companies report their financial results to investors.
The Canadian Securities Administrators says some current measures lack standardized meanings, resulting in public disclosures that are potentially misleading or confusing.
The CSA is proposing new requirements for how companies present and explain information that doesn't comply with generally accepted accounting principles, or GAAP.
Among the examples it cites are "adjusted earnings," "adjusted EBITDA," "free cash flow," "cash earnings," "adjusted funds from operations" and "earnings before non-recurring items."
The CSA says some of the non-GAAP measures help investors assess a company's performance, so it's not proposing specific limitations or industry-specific requirements.
The Ontario, Quebec, Alberta, and B.C. securities commissions and other provincial and territorial bodies that belong to the CSA have posted the proposed changes and invited comments until Dec. 5.
The Canadian Press