Revlon's 2018 annual statement said that an impact of the failed ERP implementation could mean the company "... would be unable to generate financial statements that conformed to generally accepted accounting principles (GAAP)." Why is this significant? 

 The inability to generate financial statements supported by GAAP was the root cause behind Revlon's failed ERP implementation. Financial statements in conformity with GAAP are a cornerstone to accurate financial reporting, investor confidence and ultimately, the price of the company's stock and the market capitalization of the company. 

The inability to generate financial statements supported by GAAP resulted in a miscalculation of the company's market capitalization and the one-day 7% decline in Revlon's stock price. When it was announced that Revlon's financial statements may not conform to GAAP, Revlon's suppliers stopped providing raw materials on credit, resulting in immediate cash flow issues for Revlon.