Why We Need to Update Financial Reporting for the Digital Era
JUNE 8, 2018
In our recent HBR article , we argued that financial statements fail to capture the value created by modern digital companies. and (ii) how can digital firms improve their financial reports to communicate sources of value creation in their businesses? Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Analysts increasingly rely on non-GAAP metrics.