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Non-GAAP Measures and Key Performance Indicators (KPIs) Non-GAAP financial measures and KPIs play a crucial role in shaping investor perceptions and demonstrating a companys value proposition. Common non-GAAP metrics include EBITDA, adjusted EBITDA, free cash flow, and revenue growth metrics.
For example, a company with branches doing business in the United States and the European Union will need to comply with both GAAP and IFRS accounting principles. The account-based approach uses account logic identifiers to assign accounting principles, such as using unique prefixes to determine which accounts use IFRS vs GAAP principles.
For leasing, this means International Accounting Standards Board’s (IASB’s) IFRS 16 and US GAAP Financial Accounting Standards Board’s (FASB’s) ASC 842. In addition, global companies need the flexibility to comply and report according to multiple accounting standards. For revenue recognition, they also must comply with ASC 606 and IFRS 15.
In the Language of Finance sub-series, we will look into different terms that should be understood in order to communicate effectively with the rest of your treasury team and with others. How does the language of FP&A differ from treasury? Listen in to find out. What is it? How does it work?
FASB's role and functions include: Standard-Setting: The primary responsibility of the FASB is to develop and update Generally Accepted Accounting Principles (GAAP), which serve as the foundation for financial reporting by public and private companies, non-profit organizations, and government entities in the U.S.
Treasury and cash management. These systems provide built-in support for complexities such as currency translation, intercompany eliminations, and reporting under multiple accounting guidelines, such as US GAAP or IFRS. Here are some of the key processes supported by an ERP system: Purchasing. Accounts payable. Fixed asset management.
For instance, I have always computed the present value of lease commitments in future years and treated that value as debt, a practice that IFRS and GAAP have adopted in 2019, but that computation requires explicit disclosures of lease commitments in future years.
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