Why We Need to Update Financial Reporting for the Digital Era
JUNE 8, 2018
The market caps of just four companies, Apple, Alphabet, Amazon, and Microsoft, now exceed $3 trillion. Their combined assets of $944 billion are an order of magnitude lower than the combined assets of $7,700 billion of the largest 3,177 companies in 1986, when the aggregate market capitalization reached $3 trillion for the first time. This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course.