Obtain the annual report of a company that reports non-GAAP financial measures. On the basis of the report:
· Find the reported non-GAAP financial measure and explain how it is calculated.
· Which one is more useful to the users of your selected company: profit (loss) or the alternative non-GAAP measure? Is the reported non-GAAP financial measure used by your selected company to inform the users or to mislead them? Explain your answer.
Hint: Non-GAAP measures are called differently (e.g. pro forma earnings, underlying profit, adjusted profit, street earnings, normalised profit, core earnings, non-GAAP earnings) and searching “non-GAAP” in the reports is helpful. The following firms report non-GAAP financial measures. You can use them or pick any other firm.
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