eiGAAPmittareita

eiGAAPmittareita refers to financial measures that are not prepared in accordance with Generally Accepted Accounting Principles (GAAP). In Finnish financial reporting and media usage, the term describes non-GAAP measures that companies present alongside their GAAP-compliant results. These metrics are typically designed to reflect underlying operating performance by excluding items deemed irregular or non-cash, such as one-time charges, impairment losses, restructuring costs, share-based compensation, or foreign exchange effects. The concept essentially frames the global practice of presenting adjusted or non-GAAP figures in a Finnish language context.

Usage and examples: Companies often present metrics such as EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted net income, or free cash flow as eiGAAPmittareita. The intent is to offer investors a view of ongoing performance, but definitions vary across entities, which can impair comparability. In many jurisdictions, regulators require clear reconciliation of eiGAAPmittareita to IFRS or GAAP numbers and require that such measures be disclosed with notes to the financial statements.

Regulatory and governance aspects: In Finland and the EU, primary financial statements for listed companies are typically prepared under IFRS, with reported figures and reconciliations provided. Non-GAAP presentations are subject to disclosure guidelines and ethical standards; misleading or selective use of eiGAAPmittareita can attract scrutiny from regulators and investors alike.

Criticisms: Critics argue that non-GAAP metrics can obscure true profitability, present an overly favorable picture, or confuse investors when definitions are not standardized or transparently disclosed.

See also: Non-GAAP measure, Adjusted EBITDA, IFRS, GAAP.