Write a report regarding the non-GAAP measure of Merck. Please go to Mercks latest filed annual, and
Question:
Write a report regarding the non-GAAP measure of Merck. Please go to Merck’s latest filed annual, and find the non-GAAP measure disclosed by the company. The non-GAAP measure is typically presented in Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operation. Some companies call the results of non-GAAP measures the “adjusted operating profits”, “adjusted earnings”, or “comparable adjustments.” Based on your findings of the non-GAAP disclosure in the 10-K, please write a report (2 pages) and include the following items in the report:
1. Name and description of the business of the company (10%)
2. The type of accounts (revenues, expenses, debt, operating profits, earnings per share, etc.) whose results are reported in non-GAAP measures (20%)
3. The difference between the non-GAAP result and GAAP result for the accounts (if disclosed). Is the non-GAAP result better than the GAAP result? (10%)
4. The type of adjustments (such as excluding special or one-time items from GAAP results, or re-compute the revenues or expenses using another method, etc.) (10%)
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick