What is NON-GAAP?

Methods that do not encompass the “generally accepted accounting policies”, to calculate the financial information about companies. The real value of the company is difficult to analyze due to a lack of standardization in the computation, thus making it difficult for comparison. Some of the factors that are used are free cash flow, depreciation, operating earnings, etc.

More On This Topic

Link to This Definition
Did you find this definition of NON-GAAP helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary