Look Beyond The GAAP

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We see the current discrepancies between GAAP and adjusted earnings as signaling that managements invested too much and were unable to earn an acceptable return. This would be more worrying if these write-offs presaged a sharp and broad drop in capital and consumption spending, as was the case when overinvestment in residential real estate sparked the Great Recession.

Look Beyond The GAAP by Joseph G. Paul Is the rising tide of US companies touting adjusted (or non-GAAP) earnings in recent quarters a danger for equity investors? Not necessarily. You’ve got to dive deeper into the details. Accounting Wars Recently a number of market watchers have been sounding the alarm about the widening chasm between…


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