Wasn T: Accounting Principles and Bottom Line

wasn t: The key point in July was the first earnings-per-share number, out of the four reported in the financial statements, that was highlighted first in the press release, according to Market Watch. It was calculated using generally accepted accounting principles , as now mandated by the Securities and Exchange Commission, but it wasn't the actual bottom line number; it was based on continuing operations. The layout of the latest report was basically the same as the second-quarter report—consistency can be a jewel--which Market Watch reported at the time wasn't wrong, but could still mislead investors. The third-quarter report highlighted the same continuing ops GAAP EPS number of 23 cents, which was up 21% from a year ago, while the actual bottom line net earnings GAAP EPS of 22 cents declined 12% from last year. And considering GE has undergone a massive downsizing, with the sale of over $190 billion worth of businesses, it is understandable that it would use multiple numbers that help provide some context. At least those GAAP numbers were once again listed prominently next to each other and the non-GAAP EPS number that is comparable to analyst expectations was clearly listed right below it. (news.financializer.com). As reported in the news.