March 17, 2026/IOSCO
The International Organization of Securities Commissions (IOSCO) today published an updated Statement on Non-GAAP (Generally Accepted Accounting Principles) Financial Measures.
This Statement is intended to assist issuers in providing clear and useful disclosure for investors and other users of non-GAAP financial measures, and to help reduce the risk that such measures are presented in a way that could be misleading.
This Statement is an update to the 2016 and 2002 IOSCO Statements on Non-GAAP Financial Measures, highlighting IOSCO’s commitment to clear, useful and standardized disclosures to reduce risks for investors and other users of financial information.
Financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) provide investors, analysts, and other users with a defined basis for conducting financial analysis and comparison among different entities.1 However, issuers may also convey financial information using other measures, commonly referred to as non-GAAP financial measures or alternative performance measures.
Non-GAAP financial measures can be useful to issuers and investors in providing additional insight into an issuer’s financial performance, financial condition and/or cash flow. The use of non-GAAP financial measures also can provide issuers with flexibility in communicating useful, entity-specific information. Problems can arise, however, when non-GAAP financial measures are presented inconsistently, defined inadequately, or obscure financial results determined in accordance with GAAP. Non-GAAP financial measures also typically lack a standardised meaning and, in those cases, are generally not comparable from one issuer to the next.
- All references to financial statements mean financial statements and the notes thereto.
