GVTucker:
Re: GAAP is not a fact, but an opinion. In that sense it is no different than pro forma earnings.
The actions of the SEC, DOJ, Congress, the media, and the big financials all are directing the public to distrust non-GAAP, pro forma statements. Some of us know how to interpret financial statements, but as I've mentioned before, 99% of the public does not. And they have been bombarded with news saying "don't trust the funny numbers!" Companies that stay far, far away from pro forma results, and stick to GAAP, will be rewarded with higher P/Es, IMO. Right or wrong, the general public like to see "In accordance with generally accepted accounting principles (GAAP)..." in the financial statements. FASB rule 142 should help many companies eliminate the desire to report pro forma results. It definitely will help Intel, as 142 will eventually eliminate the drastic differences between the old pro forma and GAAP numbers, and thus eliminate the temptation to report a pro forma number.
Adam |
