Non-GAAP vs GAAP Accounting

We continue our discussion of regulations and guidelines impacting the audit committee. Rick Charron, a Boston partner at KPMG, comments on a corporation’s use of Non-GAAP versus GAAP accounting standards.

Key Takeaways:

• Definition, financial performance not GAAP recognized.
• No removal of core reoccurring costs.
• Most commonly applies to cash items.
• SEC may question with a “comment letter.”

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