ikkeGAAP

ikkeGAAP is a term used to describe financial performance measures that are not defined by GAAP (Generally Accepted Accounting Principles) or IFRS. In practice, it refers to non-GAAP metrics that companies present alongside standard financial statements to convey how management views ongoing operations or underlying performance. The term is commonly used in Norwegian-language contexts and mirrors the broader concept of non-GAAP measures.

Common examples of ikkeGAAP metrics include EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted net income, adjusted earnings per share, free cash flow, and measures such as organic or constant currency revenue growth. Companies may exclude items such as acquisition-related costs, restructuring charges, impairment losses, or stock-based compensation to illustrate ongoing performance. The exact calculation and items excluded can vary between companies, which is a key characteristic of ikkeGAAP reporting.

Regulatory and governance considerations exist to prevent misuse of ikkeGAAP measures. In the United States, non-GAAP measures must be reconciled to the most directly comparable GAAP measure and clearly labeled, with limitations explained, in filings and investor communications. In the European Union, guidelines on Alternative Performance Measures (APMs) require clear labeling, reconciliation to the corresponding standardized measure, and disclosure of methodology and limitations.

Rationale and cautions: ikkeGAAP metrics can provide additional insight into operating performance and underlying trends, but they can also mislead if items are inappropriately excluded or if definitions are inconsistent. Best practices emphasize transparent definitions, complete reconciliations, and consistent application to support informed investor assessment.