A Penny Here, a Penny There: A Case of Managing Non-GAAP Earnings at PPG Industries.

This real-world case demonstrates attempts by PPG's controller to manage non-GAAP earnings to meet or beat the consensus analyst estimates. The case provides information regarding improper accounting adjustments made by PPG. In completing the case requirements, students decipher whether PPG used non-GAAP earnings to inform or obfuscate, determine whether certain accounting adjustments violated generally accepted accounting principles, compute the effect of accounting adjustments on non-GAAP and GAAP earnings, examine its materiality, and understand the likely motivations of the controller for recording accounting adjustments. The case also demonstrates the effect of classification shifting as a tool for managing non-GAAP earnings and exposes students to the importance of meeting or beating analyst estimates. It is appropriate for intermediate accounting and professional accounting research courses. JEL Classifications: M41. [ABSTRACT FROM AUTHOR]