Earnings Release Experiment Anyone?
Another topic that the PCAOB heard from Investors about this week was the question of Non GAAP Financial Measures — key performance indicators and other analytics that frequently appear in Earnings Releases and are increasingly relied upon by investors. Measures like EBITDA. The problem? These measures are not defined consistently and are not subject to audit. The IAG working group on this issue is recommending that companies must define these items, demonstrate how they can be reconciled back to the financial statements, and use them continuously for at least a 3 year period.
Hands up anyone else that thinks that sounds like a taxonomy extension (anchored back to the official taxonomy)? An area ripe for experimentation for the academic and software professionals amongst our readers?