Company XYZ presents a table illustrating a breakdown of revenues by product. Is such a breakdown considered a non-GAAP financial measure under Regulation G and Item 10(e) of Regulation S-K?
Answer 16: If the aggregate revenues presented for each product sum to the revenue amount presented on Company XYZ’s financial statements, such a table would not be considered a non-GAAP financial measure. In fact, FASB Statement 131, Disclosures about Segments of an Enterprise and Related Information, requires disclosure of revenues from external customers for each product and service, based on the revenue amounts reported in the financial statements. The presentation would be considered a non-GAAP financial measure under Regulation G and Item 10(e) of Regulation S-K, however, if the revenue is adjusted in any manner. Question 17: Company XYZ includes a table illustrating a breakdown of revenues by geographic location. In this table, Company XYZ adjusts its GAAP revenue measure for its international operations to exclude the effects of changes in foreign exchange rates associated with the current fiscal period. The table also presents the related foreign currency effect for the period
