Do Large Australian Companies Emphasise Non-GAAP Financial Measures over Statutory Net Profit (GAAP) in Annual Reports?

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Title Do Large Australian Companies Emphasise Non-GAAP Financial Measures over Statutory Net Profit (GAAP) in Annual Reports?
Author Cameron, Robyn-Ann; Percy, Majella; Stevenson-Clarke, Peta
Journal Name JASSA
Year Published 2012
Place of publication Australia
Publisher Financial Services Institute of Australasia (Finsia)
Abstract Large companies’ frequent focus on non-GAAP financial measures (‘pro forma’ earnings), rather than statutory net profit or GAAP measures, raises concerns about the potential for misinformed financial decision-making. Despite recommendations by ASIC and Finsia, in Australia there is no consistency in the calculation of non-GAAP financial measures or in their reconciliation to statutory net profit. Our study of the disclosures and the reconciliation to GAAP earnings by the largest 50 Australian listed non-mining companies finds considerable variations in reporting practices from highly transparent reconciliations to what appears to be considerable secrecy.
Peer Reviewed Yes
Published Yes
Publisher URI http://www.finsia.com/information_resources/jassa1
Copyright Statement Copyright 2012 JASSA and the Authors. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Volume 2012
Issue Number 1
Page from 13
Page to 19
ISSN 0313-5934
Date Accessioned 2012-03-14
Date Available 2013-06-05T02:09:03Z
Language en_US
Faculty Griffith Business School
Subject Accounting Theory and Standards
URI http://hdl.handle.net/10072/46938
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

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