Corporate Governance
non-GAAP reporting
HQ follows the following guidelines suggested by Securities Legislators in North America regarding non-GAAP reporting:
1. HQ states explicitly that non-GAAP earnings measures do not have any standard meaning and are unlikely to be comparable to similar measures presented by other companies.
2. GAAP-based earnings must appear as prominently as non-GAAP claims.
3. HQ will explain why non-GAAP earnings are used, and the reasons for excluding individual items required by GAAP in determining profit or loss.
4. HQ financial statements will provide a clear, quantitative reconciliation between GAAP and non-GAAP earnings, and refer to the reconciliation when non-GAAP earnings measures first appear in a news release or other disclosure document.
5. HQ will limit the use of non-GAAP earnings, and avoid using multiple non-GAAP claims that differ from each other only slightly.
6. Non-GAAP earnings will be presented on a consistent basis from period to period, explaining any changes in how they are used. "
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