4.16 Normalized Market Prices
Because of significant volatility in commodity prices, a registrant
may believe that investors would benefit from disclosure of a non-GAAP financial
measure that adjusts its results of operations by eliminating the effect of
significant changes in commodity prices. At the 2015 AICPA Conference, the SEC staff
stated that it objects to the presentation of such a non-GAAP measure because
ever-changing market conditions and volatility in commodity prices present a
challenge for registrants to ascertain a “normal” market price.