Remove Finance Remove GAAP Remove Innovation Remove Operations

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. However, many investors seem to have concluded that the most successful companies with tens of billions of dollars of valuation today could never have justified their valuation at the start of their operation based on discounted cash flow. Furthermore, the operating managers cannot take their eyes off day-to-day operations to focus on innovation.

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? It's a strategic and operational straight-jacket. 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 Sustainability

GAAP 14