TY - JOUR
T1 - Accounting's tower of babel
T2 - Key considerations in assessing Non-GAAP earnings
AU - Ciesielski, Jack T.
AU - Henry, Elaine
N1 - Publisher Copyright:
© 2017 CFA Institute. All rights reserved.
PY - 2017
Y1 - 2017
N2 - The increasingly pervasive reporting of non-GAAP earnings poses fundamental challenges for investors and analysts. Non-GAAP earnings lack comparability, and related disclosures lack sufficient transparency to add comparability. In addition, non-GAAP earnings disclosures may raise potentially troubling questions about management's motivation. We incorporate relevant research in our discussion and conclude with key prescriptions in assessing non-GAAP earnings.
AB - The increasingly pervasive reporting of non-GAAP earnings poses fundamental challenges for investors and analysts. Non-GAAP earnings lack comparability, and related disclosures lack sufficient transparency to add comparability. In addition, non-GAAP earnings disclosures may raise potentially troubling questions about management's motivation. We incorporate relevant research in our discussion and conclude with key prescriptions in assessing non-GAAP earnings.
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U2 - 10.2469/faj.v73.n2.5
DO - 10.2469/faj.v73.n2.5
M3 - Review article
AN - SCOPUS:85019578455
SN - 0015-198X
VL - 73
SP - 34
EP - 50
JO - Financial Analysts Journal
JF - Financial Analysts Journal
IS - 2
ER -