"EBITDA vs GAAP vs IFRS: What Your Business Needs to Know" provides a practical, structured guide to understanding how EBITDA fits within formal accounting frameworks and what that means for business analysis and decision-making.
This session is designed for professionals who need to interpret financial results, assess risk, or evaluate performance metrics without requiring deep accounting expertise.
The course begins by defining EBITDA, explaining its purpose as a measure of operational profitability, and highlighting common uses in performance analysis, benchmarking, and valuation. Participants will learn why EBITDA is popular, yet potentially misleading if considered in isolation.
Next, the training explores GAAP and IFRS frameworks, emphasizing how each standard governs the recognition of revenue, recording of expenses, valuation of assets, and disclosure of liabilities. Participants will learn the key differences in treatment under GAAP vs IFRS, and how these differences impact net income, cash flow, and reported profitability compared to EBITDA.
The course then provides practical examples comparing EBITDA to GAAP- and IFRS-based income for real-world scenarios. Topics include:
- Revenue recognition under GAAP vs IFRS
- Treatment of depreciation, amortization, and interest
- Handling of one-time or extraordinary items
- Implications for financial ratios and covenants
- Cross-border comparisons and adjustments for international reporting
