The SEC has questioned Valeant's practice of stripping away acquisition-related expenses from its “non-GAAP” or adjusted metrics, given that the drugmaker had been fueling growth through frenzied deal making. In multiple letters, the SEC said Valeant's management is in possession of all the facts and urged for adequate and accurate financial disclosures. “We are concerned with your overall format and presentation of the non-GAAP measures and believe revisions to your future earnings releases and investor materials are appropriate,” the SEC said in a letter to the company in February.
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SEC raises concerns about Valeant’s use of ‘Non-GAAP’ measures