Remove Discounted Cash Flow Remove GAAP Remove Human Resources Remove Payback Period

Why We Need to Update Financial Reporting for the Digital Era

Harvard Business

Financial capital is assumed to be virtually unlimited, while certain types of human capital are in short supply. Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Digital companies, however, consider scientists’ and software workers’ and product development teams’ time to be the company’s most valuable resource.

GAAP 35