US GAAP: Unanswered Questions

It has been several months since my last post. I spent some time responding to the Brydon Call for Views in the UK.

If I ignore my premise that financial statements prepared in accordance with US GAAP have no value and merely look what their value is I get to the following conclusion: The primary value of financial statements prepared in accordance with US GAAP is users are provided a codified, standard set of financial statements with footnote disclosures.

Given that statement, I ask the following questions:

  1. What is the need for non-GAAP (and for that matter non-IFRS) financial reporting/measures?
  2. Why does the SEC and any other oversight agency continue to allow the use and proliferation of non-GAAP financial reporting/measures including EBITDA?
  3. Why is the audit of financial statements prepared in accordance US GAAP a commodity?

I have posed these questions to colleagues and other professionals and I have yet to receive any satisfactory answer. Most have no response. The two primary answers I do receive are "greed" and "write the SEC". I am looking for better answers than that. Does anyone have any?

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