In an article on FEI, the author is sending out a warning the the SEC is starting to target those companies that use non-GAAP standards for financial reporting purposes. (http://daily.financialexecutives.org/mind-non-gaap-sec-elevates-attention-non-gaap-measures/) While some of the examples given are a clear application of the time-honored GAAP standards (time and revenue recognition principles) my question goes to a deeper question. GAAP has been changing at an ever increasing speed; getting more and more complex. The overriding theory is that if everyone applies the same principles then creditors and investors will be able to compare apples to apples. This assumption is great, if they understood the GAAP rules, which most would not. So, how many of you are involved in creating, commenting or any other adjective where it comes to the creation or modification of official GAAP pronouncements?
