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Is a change from non-GAAP to GAAP considered an accounting error?

If a company switches from non-GAAP to GAAP, that is considered an accounting error and not a chance in accounting policy. Since a company’s financial statements must be prepared in accordance with GAAP, any item that is non-GAAP would be considered an error.

An error is a type of accounting change that requires restatement. Restatement means that the company must go back to prior periods and restate the financial statements so that they no longer contain financial figures that are non-GAAP.

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