In this case, "Non-GAAP" means an earnings/revenue figure that the company produced itself. Companies usually claim this reflects economic reality but keep in mind they are free to cook up whatever numbers they want. GAAP would mean figures that adhere to general accounting rules, which independent auditors help confirm.

Generally, "Non-GAAP" can mean either IFRS or Cash Basis Accounting

Basically:

GAAP - Generally Accepted Accounting Principles = the way large corporations in the US have to account for things (assets, liabilities, equity, earnings, cash flows, etc.) --> Accruals

IFRS - International Financial Reporting Standards = how European companies account for things --> Accruals

Cash Basis Accounting = the way small businesses usually account for things

Cash Basis Accounting vs. Accrual Accounting (GAAP/IFRS/etc.)

* Cash Basis --> expenses and revenues directly match cash flows, I buy a machine that lasts 5 years today and expense the whole purchase price today

* Accrual Accounting --> expenses are recorded when "incurred" and revenues when "earned", I buy a machine that lasts 5 years today and expense the purchase price over 5 years

Individual standards (IFRS/GAAP, etc.) define these soft terms: incurred, earned, assets, debt, equity, other income, etc.

The only trouble I have with what you've said are in your examples for cash basis vs. accrual. Even on a cash basis I have to depreciate capital goods over time. The capital asset still has value regardless of my accounting method, so in a sense I've converted the cash (an asset) into a machine (another kind of asset). I still expense over time under the cash method because I'm representing things like wear and obsolescence rather than showing the commitment to an expense vs. the actual settlement of that commitment.

I think it's easier to demonstrate on the revenue side: if I sell a customer something and give them 30 days to pay, under the cash method I don't record the sale until I actually receive the cash whereas under the accrual method I record the sale when I invoice the customer: in the cash basis Accounts Receivable is basically a non-booking account and under the accrual method Accounts Receivable is an asset account. (Note I'm ignoring issues of deferred revenue :-) ).

I do think your definitions are sound.

Note: there are some U.S. tax rules about the first $X yearly capital purchases being immediately depreciable each year (though it's a relatively small amount).

Non-GAAP lets executives create nicer Power Point presentations.

Bullseye.