This assignment requires you to consider whether non-GAAP reporting is in line with the conceptual framework. The Conceptual Framework states in part an objective for financial reporting and the qualitative characteristics of financial information. You need to obtain the financial reports of two companies from two different jurisdictions (e.g. listed in US and Australia) and document the non-GAAP earnings metrics presented. Support your analysis with a detailed literature review of relevant academic articles and other sources like the media.
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the report must address:
1. Explain what is meant by the term non-GAAP reporting making use of the two companies you selected.
2. Given the objective of financial reporting, discuss how non-GAAP reporting supports or detracts from this objective
3. Considering qualitative characteristics and enhancing characteristics for financial information, consider how non-GAAP reporting contributes or detracts from the characteristics that support high quality financial reporting.
4. The quality of written communication (This will be assessed for clarity, presentation, grammar, spelling, sentence structure and correct referencing using Chicago style).
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Criteria that must be followed:
• Applies appropriate practices, principles and/or theories to the problems, resulting in very good analysis, and where applicable calculations are correct and complete.
• Thoroughly analyses data from sources other than financial statements to generate relevant, in depth information.
• The conclusions and/or recommendations are robust, comprehensive, relevant, significant and organised.
• All conclusions and/or recommendations are logically supported by the evidence and/or the process of analysis.
• Uses language that skilfully communicates meaning to readers with clarity and fluency, and is error-free.