# Non-GAAP Earnings Aren't The Solution

1 Opinion July 7, 2016 Seeking Alpha ![](/sites/default/files/styles/246w/public/assets/images/con_032228.jpg?itok=6XDJ551l) By Baruch Lev > The astonishing proliferation of non-GAAP earnings... is a symptom, not a solution to GAAP's shortcomings.

The astonishing proliferation of non-GAAP earnings - reported by 90% of S&P 500 companies, according to a recent Seeking Alpha article - is a symptom, not a solution to GAAP's shortcomings. It's a symptom of the widespread belief among corporate executives that GAAP earnings no longer reflect the real performance of businesses, particularly due to the adverse impact on reported earnings of one-time items (restructuring charges, asset write-offs, marked-to-market of financial assets/liabilities), and various unreliable estimates underlying earnings computation (goodwill write-offs, stock option expense). These are legitimate managerial and investor concerns.

Read the full article as published on [Seeking Alpha](http://seekingalpha.com/article/3986867-non-gaap-earnings-solution).

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*Baruch Lev is the Philip Bardes Professor of Accounting and Finance.* ## More Opinions by Baruch Lev

- [Don’t Be Fooled By Corporate Losses](https://www.stern.nyu.edu/index%2ephp/experience-stern/faculty-research/don-t-be-fooled-corporate-losses)
- [Non-GAAP Earnings: Wishful Thinking or Real Profits?](https://www.stern.nyu.edu/index%2ephp/experience-stern/faculty-research/non-gaap-earnings-wishful-thinking-or-real-profits)
- [Earnings Guidance Is Back: Oh No, Oh Yes](https://www.stern.nyu.edu/index%2ephp/experience-stern/faculty-research/earnings-guidance-back-oh-no-oh-yes)
- [Back To The Future: FASB To Reverse Goodwill Accounting](https://www.stern.nyu.edu/index%2ephp/experience-stern/faculty-research/back-future-fasb-reverse-goodwill-accounting)
- [The Rise, Fall, And Rise? Of The Conglomerates](https://www.stern.nyu.edu/index%2ephp/experience-stern/faculty-research/rise-fall-and-rise-conglomerates)