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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Digital companies, however, consider scientists’ and software workers’ and product development teams’ time to be the company’s most valuable resource. CFOs of these companies themselves admit that they cannot justify their market capitalizations based on traditional metrics.

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A Blueprint for Digital Companies’ Financial Reporting

Harvard Business Review

The level and trend of a company’s top-line metric is an advance indicator of the success of its business model. The company’s first revenues indicate the acceptance of its product or services by customers. Many of these metrics are disclosed in Facebook’s financial statements.

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On Creative Accounting: Two Creativity Myths

Harvard Business Review

An idea, behavior, or product is creative if it is both novel and appropriate to some goal. As long as the new ideas cohere with ethical standards, and generally accepted accounting principles ( GAAP ), they can yield immense benefits. She researches what makes people creative, productive, happy, and motivated at work.

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How B2B Software Vendors Can Help Their Customers Benchmark

Harvard Business Review

ADP, a leading provider of payroll capabilities, allows customers to use its DataCloud tool to compare themselves to other firms not only how much employees are paid, but also metrics like their average job tenure, attrition rates, how much they invest in retirement accounts, and at what age they retire.