Guidance Note: Disclosing non-GAAP financial information

This guidance note is intended for issuers, their directors and preparers of financial information. It sets out the Financial Market Authority's (FMA) expectations on the use of financial information in corporate documents, such as transaction documents and market communications, where that financial information is not presented in accordance with generally accepted accounting practice (GAAP) or is presented as an alternative to the statutory profit. We describe this as non-GAAP financial information.

This guidance note does not replace GAAP or the law.  Disclosure of financial information that does not follow this guidance note will not necessarily breach the law.  However, in our view, following this guidance note will increase the likelihood of compliance with regulatory requirements.  FMA will assess non-GAAP financial information disclosures against this guidance from 1 January 2013.

The examples we use in this guidance note are for illustration only.  The examples are not exhaustive and do not impose or imply particular rules or requirements.

Every issuer must comply with all regulatory requirements for financial reporting.  We do not repeat all regulatory requirements in this guidance note, although we refer to some where this is appropriate.

This guidance note does not constitute legal advice. We encourage you to seek your own professional advice to find out how any applicable laws apply to you, as it is your responsibility to determine your obligations.

This guidance note is based on regulatory requirements as at September 2012.