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How to Recognize 'Individually Tailored' Disclosures

December 12, 2018

U.S. Securities and Exchange Commission (SEC) officials provided some clarity on what constitutes "individually tailored" accounting, which is a fairly new concept in non-U.S. Generally Accepted Accounting Principles (GAAP) reporting that the commission views as a rules violation. In 2016, the SEC updated its Compliance & Disclosure Interpretations to say that non-GAAP measures that substitute individually tailored revenue recognition and measurement methods for those of GAAP could violate SEC rules. Other measures that use individually tailored recognition and measurement methods for financial statement line items other than revenue may also violate SEC rules, according to the interpretation. Read more at the Journal of Accountancy.