David Sherman

The inquiries could prompt more companies’ audit committees to more closely review non-GAAP disclosures to ensure the rationale behind the measures are thoroughly explained before filing with the SEC, said H. David Sherman, an accounting professor at Northeastern University and former SEC academic fellow. 

In a perfect world, investors, board members, and executives would have full confidence in companies’ financial statements. They could rely on the numbers to make intelligent estimates of the magnitude, timing, and uncertainty of future cash flows and to judge whether the resulting estimate of value was fairly represented in the current stock price. And […]