Non-generally accepted accounting practice (non-GAAP) earnings provoke mixed opinions on their usefulness. We provide evidence over a 15-year period that captures changes to accounting standards, economic conditions and regulatory guidance notes on non-GAAP earnings. First, many firms do not use non-GAAP earnings measures, with its popularity peaking at almost 59% in 2012 compared to below 33% in 2004, before decreasing to under 48% by 2018. The most common adjustments are tax, interest and depreciation, consistent with the preference for operating performance metrics. We document an improvement in the frequency of ‘Unknown’ adjustments (those that cannot be reconciled), reaching 32% in 2007, but it was not until 2013 that a significant improvement occurred. As this coincides with the timing of a Financial Markets Authority (FMA) guidance note requiring non-GAAP earnings reconciliations, implying greater disclosure transparency needs clear regulatory guidelines. Second, we find an elevated use of asset impairment, restructuring and fair value adjustments around the Global Financial Crisis (GFC), which suggests managers perceive GAAP earnings have to be supplemented during major economic shocks.

中文翻译：

---

新西兰非 GAAP 收益披露趋势

非公认会计实务 (non-GAAP) 收益引发了对其有用性的不同看法。我们提供了 15 年期间的证据，这些证据反映了会计准则、经济状况和关于非公认会计原则收益的监管指导说明的变化。首先，许多公司不使用非公认会计原则的收益衡量标准，其受欢迎程度在 2012 年达到近 59% 的峰值，而 2004 年低于 33%，到 2018 年降至 48% 以下。最常见的调整是税收、利息和折旧，与运营绩效指标的偏好一致。我们记录了“未知”调整（无法协调的调整）频率的改善，在 2007 年达到 32%，但直到 2013 年才出现显着改善。由于这与金融市场管理局 (FMA) 指导说明要求非 GAAP 收益对账的时间相吻合，这意味着更高的披露透明度需要明确的监管指导方针。其次，我们发现在全球金融危机 (GFC) 前后资产减值、重组和公允价值调整的使用增加，这表明管理人员认为在重大经济冲击期间必须补充 GAAP 收益。