Non-GAAP performance measures PLANET FITNESS NOTE: In order to best answer these questions below, please...
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Accounting
Non-GAAP performance measures
PLANET FITNESS
NOTE: In order to best answer these questions below, please review the business press articles listed on the prior page.
A) Based on reading the articles included in the case, present and discuss at least one argument for why a company might be motivated to include a supplemental non-GAAP measure in its quarterly or annual disclosures. Similarly, present and discuss at least one argument for why the SEC feels that the disclosures of non-GAAP measures can be harmful to financial statement users.
B) Imagine that you are asked by a client to give an opinion on whether they should disclose non-GAAP performance measures along with their GAAP financial statements. What advice would you give your client? Be sure to support your advice with thoughtful reasoning that relates to your clients perspective (i.e., their benefits and risks).
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