This research guide is designed to introduce you to a range of resources for doing company research and to help you with your quality of earnings review project.
1. Read the Ciesielski & Henry article (linked below).
Ciesielski, J. T., & Henry, E. (2017). Accounting's tower of babel: Key considerations in assessing non-GAAP earnings. Financial Analysts Journal, 73(2), 34-50. http://www.cfapubs.org.vlib.excelsior.edu/loi/faj
2. Choose a publicly traded company that has reported non-GAAP earnings at some point in the past 36 months. This is going to require some investigation on your part, but the Kilgore, Linnane, Marriner & McKenna article (linked below) provides a good starting point by listing 32 of the top 50 S&P 500 companies that are known to have reported non-GAAP earnings.
Kilgore, T., Linnane, C., Marriner, K., & McKenna, F. (2016, July 27). How the biggest companies in the S&P 500 use made-up earnings numbers. http://projects.marketwatch.com/2016/gaap-nongaap-eps-2016q1/
3. Confirm that the company you've selected has reported non-GAAP earnings within the past 36 months.
2. Compare their non-GAAP earnings numbers to their GAAP earnings numbers.
Alphabet, Inc. (2017). Alphabet announces second quarter 2017 results [Press release]. https://abc.xyz/investor/news/earnings/2017/
Alphabet, Inc. (2017). Form 10-Q for the quarterly period ended June 30, 2017. https://www.sec.gov/edgar/searchedgar/companysearch.html