Describing a calculation of income or earnings not made according to Generally Accepted Accounting Principles. It is often difficult to compare non-GAAP earnings to each other because there are no standardized methods for computing them. Examples of non-GAAP earnings include free cash flow and core earnings.


Computations used to report corporate income and earnings that are not defined by generally accepted accounting principles (GAAP) are described as non-GAAP metrics.

These measures, including core earnings, free cash flow, pro forma earnings, operating earnings, and earnings before interest, taxes, depreciation, and amortization (EBITDA), provide useful financial information about individual companies.

But lack of standardization in these calculations, plus the potential for creative accounting, make it difficult to draw relevant comparisons among companies or draw meaningful conclusions from these statistics.

References in periodicals archive ?
A reconciliation between all GAAP and non-GAAP information referenced above is contained in the tables below.
For 2018, GAAP and non-GAAP gross margins are expected to be in the low- to mid-30% range.
Baruch Lev recently reported in his article, "Surprise: Investors Like Non-GAAP Earnings" (Seeking Alpha, Apr.
However, non-GAAP performance measures have been reported by companies for several decades, as an alternative to these GAAP measures.
While many investors find non-GAAP financial measures helpful (and have come to expect them), news headlines and regulatory scrutiny continue to highlight concerns about the overuse and the expanding variety of non-GAAP financial measures.
The difference between non-GAAP and GAAP revenue is derived from the fact that deferred revenues consolidated from acquired companies are recorded based on fair value rather than book value for GAAP purposes.
As best-of-breed companies continue to search for more meaningful and effective ways to communicate with in-vestors, analysts and business partners, the use of non-GAAP accepted accounting principles] financial meas-ures is making a comeback.
For the fourth quarter of 2009, non-GAAP revenues were USD59.
In the first quarter, our revenue and non-GAAP EPS performance met our expectations, and we experienced good cash generation.
REMEMBER the euphemisms for incomparable, non-GAAP reporting of earnings before one-time charges?
To that end, the AICPA has commented on numerous SEC proposals focused on internal control reporting, audit committees, codes of ethics, misleading auditors, off-balance-sheet activities, non-GAAP proforma financial disclosures and auditor independence--seven key areas of the law in which the CPA profession has long-held and strongly advocated positions to protect the public and add valuable information to the capital markets and investors.
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