- Please read the case in your text book and answer the following questions.
- The answer to each of the four questions should be 100 words.
- I will be looking for proper grammar and good sentence structure so please keep that in mind.
- Consider the costs/harms and benefits of disclosing non-GAAP financial numbers. What value, if any, do you see in the use of non-GAAP metrics?
- What responsibilities do auditors currently have related to the use of non-GAAP measures by their attest clients? What responsibilities do you think they should have? Be specific.
- Do you believe that GE is attempting to manage earnings by disclosing five different non-GAAP measures? Explain.
- If you were a financial analyst looking at GE’s metrics in Exhibit 1, what questions would you ask and why?