December 2019 Message from CIQ
Due to new accounting standards issued by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB), we have updated the way we calculate standardized debt, PP&E (property, plant, & equipment), and EBITDA data items on the S&P Capital IQ platform.
Specifically, we created a new standardization policy that reflects the requirement that companies now capitalize their operating leases on their balance sheet:
As a result of this new policy, you can expect to see the following changes to our fundamental data on the S&P Capital IQ platform:
Cash Flow Statement & Supplemental Data Collection
We understand that our policy changes led to some inconsistencies in certain multiples and ratios that use debt and/or EBITDA. In an upcoming release, we plan to make adjustments to the calculation of EBITDA in order to correct for these inconsistencies.
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