What is GAAP and non GAAP?



1
If all public companies follow GAAP then why do they report GAAP & non-GAAP numbers when they report quarterly earnings? here are some links to prove this:

serach "gaap vs non-gaap" topics and you get several links.


should I assume that all numbers in 10K/10Q are GAAP numbers?



3 Answer(s)


0

GAAP reporting is needed by the local laws. Non-GAAP reporting is typically used by financial analysts to analyse the core growth components of a company's business.

For example non-GAAP may not take into account share based compensation as an expense. However GAAP requires this. By stripping out share based compensation from expenses, analysts can better analyse a company based on just its business drivers.

0

can i assume all the numbers in 10K/10Q are GAAP numbers?

0

GAAP is followed in USA and non-GAAP or IFRS are the other countries