GAAP

The best metric to gauge a company’s performance may not always be net income or earnings per share, as defined under U.S. Generally Accepted Accounting Principles (GAAP). Increasingly, companies are supplementing their financials with non-GAAP metrics.

Should your company report tax positions taken (or to be taken) on tax returns before they’re resolved with the tax authorities? Here’s an overview of the accounting rules for uncertain tax positions under U.S. GAAP.

Warning: Non-GAAP metrics can sometimes mislead investors! That’s why some stakeholders want a formal definition of EBITDA to be added to the accounting rules.