A Case Study in the Use and Potential Misuse of Non-GAAP Financial Measures

Authors

  • Benoit Boyer Sacred Heart University
  • Ralph Lim Sacred Heart University
  • Bridget Lyons Sacred Heart University

Keywords:

Business, Economics, Finance, GAAP

Abstract

Firms reporting under US GAAP are allowed to supplement financial information with non-GAAP measures. We examined 6 Firms in the chemical industry and looked at what information was presented (Dow, Du Pont, Monsanto, FMC, PPG, Praxair). We use the 2014 Annual Report so that we would have comparable data for all companies. For 2 firms we looked at numbers presented in Cap IQ and in Bloomberg and compared them to the numbers presented by the company (Dow and Du Pont). The numbers reported by the firms and the analysts differed greatly.

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Published

2016-07-01

How to Cite

Boyer, B., Lim, R., & Lyons, B. (2016). A Case Study in the Use and Potential Misuse of Non-GAAP Financial Measures. Journal of Applied Business and Economics, 18(3). Retrieved from https://mail.articlegateway.com/index.php/JABE/article/view/853

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Articles