Bye, bye rosy financial press releases. The Securities and Exchange Commission this week approved new rules that would bar companies from reporting "pro-forma" financial results without putting them side-by-side with the true financial picture –financials that conform to GAAP.
Regulators and other critics of the practice say companies have misused pro-forma numbers to make their companies appear financially healthier than they actually are by stripping out one-time charges and costs.
In addition, any earnings-related press releases must also be sent to the SEC.
