In letter to Allergan, SEC says it will scrutinize industry's use of non-GAAP accounting
When the SEC criticized Valeant Pharmaceuticals over its use of non-GAAP reporting, it seemed like a regulator barking at a company known for pushing the limits. But now the agency has fired a warning shot across the bow of the industry, saying in a letter to Allergan that it intends to examine how the industry is potentially exploiting the practice. In its Jan. 11 letter to Allergan CFO, the SEC admonished the company for using non-GAAP in reporting its earnings per share. While other companies may do the same thing, and the agency said it didn’t agree with its use that way.
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