Standard Setter Moves Ahead on Non-GAAP Financial Reporting

Global accounting standard setters voted Tuesday to draw up detailed proposals to include non-GAAP measures in formal financial statements, although the timing for doing so remains unclear.

The International Accounting Standards Board decided unanimously at its January meeting to draft detailed proposals for including commonly used measures, including operating profit and earnings before interest, taxes, depreciation, and amortization (EBITDA) in the income statement. Those measures aren’t covered by Generally Accepted Accounting Principles and aren’t audited.

• In December 2019 the IASB published draft proposals to introduce several new sub-totals to the income statement, meaning that terms such as operating income would ...