Just read an article saying FB used GAAP earnings the last two years and magically this year its non GAAP accounting that gives the big rise... No position in FB but seems a little sketchy.
ipod is for dummies, I told ipod exactly what was going on the idiot still did not believe - stupid is as stupid does. All the fool had to do was look at the reconciliation (required) between GAAP and non GAAP to verify that 9 cents was the "Share-based compensation and related payroll tax expenses" which the idiots at facebook thinks is a nonrecurring item - this is ongoing and should not be considered. Their eps is 25 cents plain and simple to add back 9 cents for share based compensation which is dilutive and present that as a non GAAP number is ludicrous - no wonder the moron CFO is leaving. The funny thing is no one is questioning this FB stupidity cooking the books.
Who care what method FB used. Both GAAP and Non GAAP numbers are provided. Question is, how do you look at the numbers. Read more here.. http://seekingalpha.com/pr/9664373-facebook-reports-first-quarter-2014-results
I am more amused at how many people on here posts without a clue.
let me break down for you the difference between GAAP and non-GAAP
GAAP includes all activities including events that has nothing to do with operation, it is used for official book keeping.
non-GAAP adjusts for one time events such as restructuring, sererance pay, loss,gain fron sale of property, events that are extraordinary that is not normal in the course of business etc.
BOTH are used for every company, no exception. analyst ALWAYS based their estimates off non-GAAP.
they have no extraordinary 1 time items - they are taking out compensation to employees via options as the extraordinary event - dumb and just plain wrong. Also why do you think GAAP accounting exists if not to reflect what actually happened during the period. flake off
You are spot on. What's worse is now idiots on CNBC are actually mixing up Non GAAP eaearnrnings for FB and comparing to GAP earnings estimates and exclaiming about what an amazing beat. 25 cents earnings vs 24 cents est is not amazing beat but wait let cnbc tell you that it was by comparing non GAAP eps of 34 cents to GAAP earnings estimates and voila instant stupidity. This is why presenting GAAP and Non GAAP numbers is a problem.