Adjusted earnings

Financial reporting - accounting principles - alternative performance measures.

Adjusted earnings measures are amounts calculated and disclosed by management that supplement the reporting and disclosures of earnings required by law and financial reporting standards.

They are believed by management to enable users of financial statements to obtain a fuller understanding of underlying performance since they exclude items which are not reflective of the normal course of business.

However, all such measures should be treated with caution, as management may - consciously or unconsciously - be influenced to present figures in ways that reflect well on its own performance.

See also

• Accounting policies
• Constant exchange rate (CER)
• Disclosure
• Earnings per share
• Generally accepted accounting principles
• Financial reporting
• Non-GAAP earnings
• Underlying