benji...thank you for this explanation of non-gaap vs gaap accounting. I have no idea why they would file the 8k with that information as opposed to the gaap number. The worst part is they changed the initial PR which made it look suspicious. They should have put both numbers in the 8k IMO to clear up any misunderstandings.
Quote:Non gaap is basically cash basis accounting which means they recognize rev and cash as they come in.. gaap accounting is the preferred method because it gives readers, investors, creditors a more accurate account of the overall financial picture of the company. Audited financials are prepared in conformity with GAAP because here cash basis are adjusted to reflect accrual basis accounting. Under cash basis acctg a company may understate revenues that are to be collected in a future period but belongs to that reporting pd. Gaap accrual basis captures that accrued revenue and the related accts receivable then records cash at a later date when received. So under cash basis the company might not capture all the rev it should in that reporting pd.. this is usually adjusted through journal entries to the ledger to reflect the real revenue that should be accrued and recorded. Hope that helps some.nope they arent hiding anything.. non gaap or cash basisi is just the way they prepare their internally generated financials then the auditors come in at close of FY and apply GAAP to the financials. But some companies apply GAAP throughout the year..goooo the NEW TALK! !
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