Harvard Business

AUGUST 3, 2018

Currently, firms’ first report net profits and then back out many of these one-time items to present a non-GAAP (Generally Accepted Accounting Principles) profit number. Because investors consider these non-GAAP numbers to be value-relevant, we propose a more direct way for them to be calculated. For example, a firm could mislabel a product-enhancement expense as a product-development outlay or overestimate the lifetime value of a customer.

GAAP 28

GAAP Report Proposal Metrics 28

Harvard Business

JUNE 8, 2018

Digital companies, however, consider scientists’ and software workers’ and product development teams’ time to be the company’s most valuable resource. This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course. Analysts increasingly rely on non-GAAP metrics. Martin Konopka/EyeEm/Getty Images.

GAAP 34

GAAP CFO Discounted Cash Flow Payback Period 34

Harvard Business

AUGUST 30, 2018

These solutions lie at the intersection of technology development by companies and policy formulation by governments. India’s finance ministry has proposed such an approach to the central bank. Fifth, in contexts where digital trade agreements do not exist and are unlikely in the foreseeable future, develop nonbinding norms and principles, leaving implementation to national governments. Philippe Intraligi/Getty Images.

GAAP 30

GAAP Supply Chain Policies Banking 30

Harvard Business Review

APRIL 3, 2015

In recent years, investors have learned that defining the market value of a firm cannot just be based on finances. GAAP and FASB standards require financial reporting of earnings, cash flow, and profitability – all measures that investors have traditionally examined. The leadership ratings index we have developed has two dimensions, or domains: individual and organizational.

GAAP 10

GAAP Venture Capitalist Hedge Human Capital 10