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The gap between GAAP and Non-GAAP

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Mar 31, 2020

In March 2020, the CPA Journal released an article on how many companies have increasingly turned to the reporting of non-GAAP measures, which fall outside the realm of generally accepted accounting principles and must be reconciled to more familiar GAAP measures.

Proponents claim that non-GAAP measures provide better indicators of performance; critics contend that they obscure problems and impede comparability. The authors analyzed a wide array of non-GAAP measures and found that this reporting did provide some useful insights into the companies that used them, but at the expense of clarity and transparency.

Review the article on CPA Journal's website.

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