Why We Need to Update Financial Reporting for the Digital Era

Harvard Business

In the meanwhile, companies increasingly resort to provision of proforma and non-GAAP reports, even though this practice is looked down upon by the SEC and is opportunistically misused by a few companies. Analysts increasingly rely on non-GAAP metrics. This is an outcome of the growing divergence between what companies consider as value-creating metrics and those reported as profits in the GAAP. Martin Konopka/EyeEm/Getty Images.

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The U.S. Corporate Tax Code Is Broken. How Should We Fix It?

Harvard Business Review

The second and third questions raise enforcement and compliance issues — for the second question, things are clear. On Tuesday, Apple CEO Tim Cook testified in front of the Congressional Permanent Subcommittee on Investigations as a part of their look into the company''s corporate tax practices — according to Sen. Carl Levin, the chairman of the committee , "Apple successfully sought the holy grail of tax avoidance.