firms in their financial reports of financial measures that aren't part of Generally Accepted Accounting Principles (GAAP). The author offers a few examples, and comments about concerns on the part of the U.S. Securities and Exchange Commission related to the presentation of non-GAAP figures. ...
From a financial manager's perspective, what is the capital-budgeting process used to identify projects that add to the firm's value? Here is your first question: Explain what current assets and fixed assets are and give as many examples as you can for eac...
Mollie Duckworth
Rometty Chairman, President and Chief Executive Officer This letter includes selected references to certain non-GAAP financial measures that are made to facilitate a comparative view of the company's ongoing operational performance. This letter also includes certain historical information on strategic ...
International Financial Reporting Standards (IFRS) are standards that allow companies to make their financial statements accessible worldwide. Read our guide to learn more.
Manual processes are always prone to human error. Errors from outside the company can also compromise the integrity of the financial data. Automated processes reduce the risk of this occurrence and capture information from the original invoice so you can verify accuracy. ...
Remember, though, that non-GAAP adjustments are risky. The Securities and Exchange Commission (SEC) and Financials Accounting Standards Board (FASB) have taken notice of how many companies use non-GAAP measures to mislead investors. When you’re reviewing a company’s financial documents, it’s ...
Negatively amortizing loans are far worse, though. These loans allow you to pay less than the interest that’s accruing. The balance grows over time so that you owe as much or more than you borrowed at the end. Going back to the example of the pharmaceutical company you’re considering in...
non-GAAP figures do not include non-recurring or non-cash expenses. Also, because there are no standards under non-GAAP, companies may use different methods for financial reporting. As a result, it is difficult to compare financial results between companies in an industry...
and outstanding share measurements.5If a financial statement is not prepared using GAAP, investors should be cautious. Also, some companies may use both GAAP- and non-GAAP-compliant measures when reporting financial results. GAAP regulations require that non-GAAP measures are identified in financial ...