GAAP or IFRS accounting tries to accurately represent the economic earnings of a business. However, given the varying business models, it is difficult to come up with a common accounting regime that will accurately represent the earnings of all the businesses to which the regime is applied. Savvy analysts must often make adjustments to GAAP or IFRS earnings to get to the true economic earnings of a business. Setting aside varying business models, one type of corporate action can have a dramatic impact on the reported numbers, as well as give one insight into the intelligence and priorities of management. This event is a merger or acquisition.