Remove Finance Remove GAAP Remove Innovation Remove Management

Why We Need to Update Financial Reporting for the Digital Era

Harvard Business

This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course. So, investors, and therefore managers, might be adjusting their approach to risk accordingly. Therefore, companies see little value in disclosing the details of their current and planned projects in their financial disclosures, even if those disclosures can reduce the information asymmetry between investors and managers.

GAAP 35

You Can't Impress Stock Analysts.and Shouldn't Try

Harvard Business Review

Who declared 7 or 10 or 15 percent growth in earnings a sacrosanct pursuit, above all other corporate goals — like the innovation that leads to novel solutions that address customer needs? In essence, they'll report their results to GAAP standards and as the SEC, FASB, and other quasi-regulatory bodies require.but they won't answer to analysts. Economy Finance SustainabilityExxonMobil reported last week that its net income reached $10.3 billion.in

GAAP 14

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.

GAAP 12