Adjusted earnings versus GAAP and IFRS
Reported earnings are what comes out of applying the accounting standard — US GAAP in the United States, IFRS in Europe. Adjusted earnings are what the company itself publishes after excluding items it considers exceptional: restructuring, impairments, share-based compensation. The gap can be large and is not standardised, so every company adjusts in its own way. Hence the rule most often broken when reading results: if the analyst consensus is on an adjusted basis, comparing reported earnings against it does not measure a surprise, it measures a difference in accounting criteria.
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Celsmar computes this from the accounts companies file with their regulator, and shows which line every figure comes from. Free to start, no card.
Definition for informational purposes. It is not financial advice nor a recommendation to buy or sell.