Worthington Company and Millward Company both reported pro forma earnings numbers in conjunction with their release of

Question:

Worthington Company and Millward Company both reported pro forma earnings numbers in conjunction with their release of results for the most recent quarter. Both announcements included a reconciliation to earnings. These reconciliations are reproduced here.
Worthington Company
Pro Forma Earnings
(in thousands)
earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000
Add back amount expensed for the purchase of in-process R&D . . . . . 35,000
Subtract a one-time gain from the sale of a building . . . . . . . . . . . . . . . (17,000)
Pro forma earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68,000
Millward Company
Pro Forma Earnings
(in thousands)
earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000
Add back expenses associated with a strategic realignment initiative . . . 10,000
Add back employee training expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000
Pro forma earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68,000

Which of the two pro forma earnings disclosures do you find to be the more informative? Explain.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...