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. Furthermore, the operating managers cannot take their eyes off day-to-day operations to focus on innovation. That VC arm is given relatively unconstrained financial capital to invest in innovation and disruptive ideas. Analysts increasingly rely on non-GAAP metrics.


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. follows Generally Accepted Accounting Principles (GAAP), developed through a rules-based approach.


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GDP Is a Wildly Flawed Measure for the Digital Age

Harvard Business

Gross Domestic Product (GDP), our core measure of prosperity, was developed during the industrial age. As the market, including customers, employees, and investors, shifts the mix of what is done and what is consumed, this most important and commonly used economic indicator, along with Generally Accepted Accounting Principles (GAAP), tells a concerning story. HBR STAFF. Germany, Switzerland, and Japan are now in negative interest rate territory. So are Denmark and Sweden. And U.S.

GDP 44

Calculating the Market Value of Leadership

Harvard Business Review

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. The leadership ratings index we have developed has two dimensions, or domains: individual and organizational.