An issuer must not disclose a non-GAAP ratio in a document unless all of the following apply:
(a) the non-GAAP ratio is labelled using a term that, given the non-GAAP ratio’s composition, describes the nonGAAP ratio;
(b) the non-GAAP ratio is presented with no more prominence in the document than that of similar financial measures disclosed in the primary financial statements of the entity to which the non-GAAP ratio relates;
(c) in proximity to the first instance of the non-GAAP ratio in the document, the document
(i) explains that the non-GAAP ratio is not a standardized financial measure under the financial reporting framework used to prepare the financial statements of the entity to which the non-GAAP ratio relates and might not be comparable to similar financial measures disclosed by other issuers,
(ii) discloses each non-GAAP financial measure that is used as a component of the non-GAAP ratio,
(iii) discloses, directly or by incorporating it by reference as permitted under section 5, an explanation of
(A) the composition of the non-GAAP ratio,
(B) how the non-GAAP ratio provides useful information to an investor and explains the additional
purposes, if any, for which management uses the non-GAAP ratio, and
(C) if the label or the composition of the non-GAAP ratio has changed from what was previously
disclosed, an explanation of the reason for the change;
(d) if the non-GAAP ratio is disclosed in MD&A or in an earnings release of the issuer, the non-GAAP ratio for a comparative period, determined using the same means of calculation, is disclosed in the document, unless
(i) the non-GAAP ratio is forward-looking information, or
(ii) it is impracticable to disclose the measure for the comparative period.