non-gaap
UK[nɒn ɡæp]US[nɑːn ɡæp]
adj
Relating to or being a financial measure that is not defined by or does not conform to Generally Accepted Accounting Principles (GAAP), often used by companies to supplement standard financial reports.
Morpheme Breakdown
non
gaap
non
not
gaap
Generally Accepted Accounting Principles
Etymology
The term is a modern compound formed within the specialized lexicon of finance and accounting. The prefix "non-," derived from Latin non meaning "not," is a productive negating element in English. It is attached to the acronym "GAAP," which stands for "Generally Accepted Accounting Principles," a standardized framework for financial reporting in the United States. The literal construction "not-GAAP" logically describes any financial metric calculated outside the boundaries of that official framework, highlighting its supplemental or alternative nature to the standard figures.
Analysis
Structure: non (not) + gaap (Generally Accepted Accounting Principles)
non: Latin origin, a prefix meaning "not," serving a negating function in the word.
gaap: English origin, an acronym for "Generally Accepted Accounting Principles," serving as the core noun being modified.
Examples
The company's earnings press release featured a prominent non-GAAP adjusted profit figure.
Analysts often scrutinize non-GAAP adjustments to assess a company's true operational performance.
Regulators require clear reconciliation between GAAP and non-GAAP financial measures.