As we approach the end of the first quarter, your counterparts
in the IR department will be facing new pressures following the
Securities & Exchange Commission's adoption of new pro forma
guidelines.
These guidelines mandate that companies make a valid comparison
between any pro forma reporting in earnings and Generally Accepted
Accounting Practices (GAAP).
While the IR professionals and CFOs are prepared to work under
the new regulations, PR pros should take steps to ensure that they
are ready, as well.
Tactics: Work with the IR department to develop a basic
understanding of what pro forma reporting means and how it affects
your company, as well as how the new SEC guidelines will impact
your organization.
Be able to explain to reporters the impact of the pro forma
guidelines and any pro forma reporting in your company's earnings.
If you feel a reporter is misguided in his understanding of your
company's earnings, be sure you have an open line to the CFO so you
can quickly arrange an interview.
And while you're brushing up on the new regulations, take the
opportunity to ensure that the numbers people are ready to discuss
pro forma issues in layman's terms so journalists come away with a
clear understanding and quotable material.