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    Facebook's GAAP to Pro-Forma Income

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    In order to answer these questions, you will need to review the attached files.

    What information can the pro-forma earnings number provide that the GAAP earnings number does not?
    Give examples from Facebook of the possible differences that might exist between the two earnings numbers.
    What are the potential advantages and disadvantages of using pro-forma earnings to assess a firm's performance?
    How does Facebook's performance look under GAAP and pro-forma?

    © BrainMass Inc. brainmass.com October 10, 2019, 7:40 am ad1c9bdddf
    https://brainmass.com/business/accounting/facebooks-gaap-pro-forma-income-590571

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    What information can the pro-forma earnings number provide that the GAAP earnings number does not? Give examples from Facebook of the possible differences that might exist between the two earnings numbers.
    In page 17 of Facebook's Second Quarter Earnings' presentation, Facebook presented its GAAP net income (loss) which is then adjusted for non-GAAP items such as share-based compensation expense, payroll tax expenses related ...

    Solution Summary

    The solution compares Facebook's GAAP and pro-forma income. Examples from Facebook of possible differences that might exist between the two earnings numbers are provided.

    $2.19