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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course. Furthermore, the operating managers cannot take their eyes off day-to-day operations to focus on innovation. Analysts increasingly rely on non-GAAP metrics.

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A Blueprint for Digital Companies’ Financial Reporting

Harvard Business Review

Investors, therefore, look not just for reported revenues but for drivers behind the revenues, especially because digital companies’ operating activities often differ from their revenue-generating activities. The first category should describe the amount spent on supporting current operations.

Report 8
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You Can't Impress Stock Analysts.and Shouldn't Try

Harvard Business Review

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.

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