Amgen is a biotechnology firm that develops and manufactures human therapeutics that fight cancer, kidney disease, rheumatoid arthritis and other serious illnesses. As part of its 2008 financial report, the Company issued “non-GAAP financial measures” to facilitate additional analysis by investors.
- In one paragraph, briefly describe “non-GAAP financial measures” and how they differ from GAAP.
- Does the SEC allow “non-GAAP financial measures”?
- What “non-GAAP financial measures” did Amgen report? Explain some of specific issues they addressed in this supplemental information.
PR Newswire. (2009). “Amgen’s Fourth Quarter 2008 Adjusted Earnings Per Share Increased 6 Percent to $1.06; Full Year 2008 Adjusted Earnings Per Share,” Fierce BioTech (Retrievable online at http://www.fiercebiotech.com/press-releases/amgens-fourth-quarter-2008-adjusted-earnings-share-increased-6-percent-1-06-full-year#ixzz0Yk4GRVCZ)
U.S. Securities and Exchange Commission. (2002). “Final Rule: Conditions for Use of Non-GAAP Financial Measures,” Release No. 33-8176; 34-47226; FR-65; FILE NO. S7-43-02 (Retrievable online at http://www.sec.gov/rules/final/33-8176.htm)