According to a recent study in USA Today, new accounting rules and renewed emphasis on transparency has "all but squashed" the use of pro forma numbers.

According to the study, conducted with Thomson First Call, only 28 of the 444 companies in the S&P 500 that reported second-quarter results provided numbers "that subtracted anything other than benign one-time items."

Among the few to use pro forma numbers were eBay and Cisco, both of which excluded from earnings certain costs of stock-based pay, as well as reduced values of some intangible assets. New accounting rules require GAAP reconciliation for all pro forma numbers.

The study's results are largely in line with a June NIRI survey, which stated that companies were attempting to avoid use of pro forma numbers.

The reason: confusion about Regulation G.

For a refresher, we've included a link below to our coverage of the rules regarding non-GAAP financial measures:

  Refresher And Guidance: Use of Non-GAAP Financial Measures

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