From www.journalofaccountancy.com: (US context) Many companies supplement GAAP financial reporting with non-GAAP disclosures, which require careful scrutiny from preparers and users to avoid misleading stakeholders about a company’s financial health.

The SEC outlines specific requirements for public companies that report non-GAAP measures, emphasising the need for transparency and reconciliation with GAAP figures.

Examples from Silicon Valley Bank and CrowdStrike illustrate how non-GAAP measures can distort financial realities, underscoring the need for heightened professional scepticism in their evaluation.