Why We Need to Update Financial Reporting for the Digital Era
JUNE 8, 2018
Financial capital is assumed to be virtually unlimited, while certain types of human capital are in short supply. Digital companies, however, consider scientists’ and software workers’ and product development teams’ time to be the company’s most valuable resource. Business students are taught to value a company based on the discounted amounts of future cash flows or earnings. Analysts increasingly rely on non-GAAP metrics.