Remove Development Remove Finance Remove GAAP Remove Innovation

Why We Need to Update Financial Reporting for the Digital Era

Harvard Business

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. Furthermore, the operating managers cannot take their eyes off day-to-day operations to focus on innovation. Analysts increasingly rely on non-GAAP metrics.

GAAP 35

The Dangers of Digital Protectionism

Harvard Business

These include access to digital goods and services, being part of global supply chains, accelerating and partaking in the fruits of innovation, and helping citizens access information, entertainment, and connectivity on a worldwide basis. 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. Philippe Intraligi/Getty Images.

GAAP 44

Calculating the Market Value of Leadership

Harvard Business Review

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. To gain more insights into a specific firm, investors have shown more interest in intangibles like strategy, brand, innovation, systems integration, collaboration, and so on.

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