Non-GAAP financial measures are used as a "complement," like bread and butter, to supplement the earnings reported under GAAP. Because GAAP does not permit their inclusion in reported financial statements, an independent auditor's opinion does not cover non-GAAP financial measures. Non-GAAP financial measures: Are numerical measures that may include or exclude GAAP measurements regarding the historical or future performance of a com-pany's financial status. Are positioned as providing additional acumen or insight into the reported entity. Purport to "link" information that is stan-dard under GAAP reporting with what is con-sidered customary or "tailored" reporting for revealing growing trends in "specialized in-dustries" (i.e., law firms, health care, aircraft, oil and gas, media, retail, etc.).
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