Harvard Business Review

MARCH 21, 2013

They're just following what's known as Generally Accepted Accounting Principles, or GAAP. But GAAP is exactly where the trouble lies. According to GAAP we are now 50% complete, because we have spent 50% of our budget. The GAAP financial report will recognize half the revenue on the project, or $2.5

GAAP 15

GAAP Project Budgeting Report 15

Harvard Business Review

MARCH 21, 2013

They're just following what's known as Generally Accepted Accounting Principles, or GAAP. But GAAP is exactly where the trouble lies. According to GAAP we are now 50% complete, because we have spent 50% of our budget. The GAAP financial report will recognize half the revenue on the project, or $2.5

GAAP 8

GAAP Project Budgeting Report 8

Harvard Business Review

DECEMBER 21, 2016

Further, it simpler and less risky for managers tend to stick closely to the previous year’s budget. Finally, Generally Accepted Accounting Principles (GAAP) used to manage businesses and report to investors often ignore intangible assets or miscategorize them as expenses.

Intangible Assets 8

Intangible Assets Business Model GAAP Budgeting 8

Harvard Business Review

MAY 8, 2014

Cash revenues were indeed $200 million for the year, but the correct GAAP net revenues were only $30 million and profit was $2 million. If the CFO has a realistic budget, it’s much easier for a midsized company to borrow money. They asked: “Who do we need in order to rebuild the firm?” Maintaining borrowing capacity.

Crisis 8

Crisis CFO GAAP Banking 8