Facebook Praised For Minding The GAAP

The biggest surprise about Facebook's initial public offering prospectus to some in the accounting and finance communities was that there were no big surprises.

The biggest surprise about Facebook’s initial public offering prospectus to some in the accounting and finance communities was that there were no big surprises.

Writing for ForbesThe Street, Gary Weiss praised the social network — and cited others doing so as well –for sticking to generally accepted accounting principles, and not using non-GAAP metrics to tweak the numbers into something they may not actually be.

GAAP figures reflect American accounting standards and are stricter than non-GAAP; the latter permits companies to exclude one-time expenditures and other things that might interfere with profitability.

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