EBITDA vs GAAP vs IFRS: What Your Business Needs to Know
Learn how EBITDA relates to GAAP and IFRS net income, reconcile it to formal financial statements, and spot the red flags that make EBITDA misleading.
Speaker
Justin Muscolino
Compliance training executive · 20+ years in compliance and training
Overview
EBITDA shows up in investor decks and performance reviews, but it only makes sense when you know how it fits with formal accounting frameworks. This 60-minute EBITDA vs GAAP vs IFRS webinar is built for people who read financial results, judge risk or review performance measures but are not accounting specialists.
You'll start with what EBITDA is, why it is used to measure operating profitability, benchmark and value businesses, and why it can mislead when read on its own. The session then compares how GAAP and IFRS govern revenue recognition, expenses, asset valuation and liability disclosure, and how those differences change net income, cash flow and reported profit.
Practical examples cover depreciation, amortization and interest, one-time items, financial ratios and covenants, and cross-border adjustments, including scenarios for fintechs, banks, MSBs and payments companies.
Why attend: EBITDA is a non-GAAP metric, so companies can calculate and adjust it in different ways. Figures that look comparable often aren't, and a quick operating snapshot can leave out key costs, misstate cash flow or hide financial risk. Misreading it can lead to poor decisions and inaccurate performance assessments. This session suits compliance, risk, AML, operations and product professionals, internal auditors, fintech partner and vendor managers, analysts and anyone who relies on financial data.
What’s covered
- Definition and purpose of EBITDA, and why it is popular
- How GAAP and IFRS govern revenue, expenses, asset valuation and liabilities
- Differences between EBITDA, GAAP net income and IFRS net income
- Revenue recognition under GAAP vs IFRS
- Treatment of depreciation, amortization and interest
- Handling one-time or extraordinary items
- Reconciling EBITDA to formal financial statements
- Implications for financial ratios and covenants
- Cross-border comparisons and adjustments for international reporting
- Practical examples for fintechs, banks, MSBs and payments companies
- Red flags and common pitfalls when using EBITDA
Who should attend
What you get
About the speaker
Justin brings over 20 years of wide-ranging experience in compliance, training, and regulation in the financial services sector. Most recently, he served as Head of Compliance Training at Bank of China, where he led the compliance training function and created and monitored the annual training plan through a thorough training needs analysis. Previously, he served as Macquarie Group’s Head of Americas Compliance Training and J.P. Morgan Chase’s compliance training manager. He also worked for FINRA, a US regulator, where he created Examiner University to train examiners on how to perform their function.
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