7
4/14/2003
Standard & Poor’s Core
Earnings
vs. GAAP
vs. GAAP
•Unlike GAAP, Standard & Poor’s Core Earnings does not smooth out the volatility that is really present in
earnings and operations. However,
the Standard & Poor’s Core
Earnings history we have developed will mute that volatility. In addition, we have provided guidance on how investment managers can easily take pension interest costs – i.e., market-induced
volatility – out of the
Standard & Poor’s Core Earnings calculation.