Question

Could someone expalin what is the impact to shareholders if the information is not aligned to gaap?

Answer 1

GAAP means Generally Accepted Accounting Principles which are made by financial and reporting board so to maintain the uniformity in making the financial statements of the organisation.This Help the Benefitors of the financial statements to analyse it more properly as there are proper assumptions,conventions and disclosures are made so with that the benefitors can make thier decisions

Further the applicability of Gaap means that the financial statements should be audited Where applicable so benefitors have more trust on these financial statements and can made their decisions more timely and wisely

Non Gaap financial statements can impact on shareholders that the decisions made by them on through these fianancial statements can be misleading and violation of their interest

if information is not aligned to Gaap then it may happen that there is no proper reporing of information in financial statements which can influence the decisions of shareholders