Harvard Business Review

MARCH 21, 2013

They're just following what's known as Generally Accepted Accounting Principles, or GAAP. But GAAP is exactly where the trouble lies. According to GAAP we are now 50% complete, because we have spent 50% of our budget. The GAAP financial report will recognize half the revenue on the project, or $2.5

GAAP 9

GAAP Project Budgeting Report 9

Harvard Business Review

JULY 11, 2012

If a CFO is operating outside the bounds of policy or law or GAAP and is willing to lie to the board about it, I doubt that he or she would be overly concerned about whether the line being crossed is dotted or solid. Third (and most important): It will do great harm.

CFO 14

CFO Committee GAAP Proposal 14

Harvard Business Review

JUNE 8, 2018

In the meanwhile, companies increasingly resort to provision of proforma and non-GAAP reports, even though this practice is looked down upon by the SEC and is opportunistically misused by a few companies. Analysts increasingly rely on non-GAAP metrics.

Report 8

Report GAAP Net Present Value CFO 8

Harvard Business Review

AUGUST 3, 2018

Currently, firms’ first report net profits and then back out many of these one-time items to present a non-GAAP (Generally Accepted Accounting Principles) profit number. Because investors consider these non-GAAP numbers to be value-relevant, we propose a more direct way for them to be calculated.

Report 8

Report GAAP Company Proposal 8

Harvard Business Review

JULY 1, 2016

For instance, he states that “When forced to choose between optimizing the appearance of our GAAP accounting and maximizing the present value of future cash flows, we’ll take the cash flows.” .” He then enumerates the ways in which the firm’s policies will support the objective.

Short-term 13

Short-term Long-term Objective Incentives 13

Harvard Business Review

NOVEMBER 1, 2011

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. A few leaders — from companies such as Google and Unilever — have told Wall Street that they won't provide "guidance" anymore.

GAAP 9

GAAP Short-term P&L EPS 9

Harvard Business Review

AUGUST 30, 2018

follows Generally Accepted Accounting Principles (GAAP), developed through a rules-based approach. International Financial Reporting Standards (IFRS), developed through a principles-based approach, are followed by over 100 countries. In contrast, the U.S. Slowly but steadily, the two sets of standards are converging.

Supply Chain 13

Supply Chain Globalization GAAP Policies 13

Harvard Business Review

JULY 28, 2016

As the market, including customers, employees, and investors, shifts the mix of what is done and what is consumed, this most important and commonly used economic indicator, along with Generally Accepted Accounting Principles (GAAP), tells a concerning story.

GDP 8

GDP Wilde Intangible Assets GAAP 8

Harvard Business Review

MAY 8, 2014

Cash revenues were indeed $200 million for the year, but the correct GAAP net revenues were only $30 million and profit was $2 million. After three months of pre-audit investigation, he found material errors in the financial statements and revenue recognition problems.

Crisis 9

Crisis CFO GAAP Banking 9

Harvard Business Review

DECEMBER 21, 2016

Finally, Generally Accepted Accounting Principles (GAAP) used to manage businesses and report to investors often ignore intangible assets or miscategorize them as expenses.

Intangible Assets 8

Intangible Assets Business Model GAAP Budgeting 8

Harvard Business Review

APRIL 3, 2015

GAAP and FASB standards require financial reporting of earnings, cash flow, and profitability – all measures that investors have traditionally examined. In recent years, investors have learned that defining the market value of a firm cannot just be based on finances.

Marketing 8

Marketing Leadership Venture Capitalist GAAP 8

Harvard Business Review

AUGUST 10, 2018

The appeal of widespread nonfinancial performance measures for assessing companies has been discussed for several decades, but never achieved—despite continuing growth in assets and priorities poorly measured by GAAP accounting.

Benchmarking 8

Benchmarking Software B2B Comparison 8

Harvard Business Review

MAY 23, 2013

I think I''ve explained a, b and c above, but d and e are really important as well. A majority of business income is now organized through pass-through entities which means that capital is being diverted from our public corporations organized as C-Corps and toward business that shoehorn their way into pass-through entities.

Intangible Assets 10

Intangible Assets Incentives System GAAP 10

Curious Cat

MARCH 21, 2016

When you read about non-GAAP earnings, often one of the big costs they are excluding is the massive stock giveaways to executives. From the article (linked above), Facebook gave executives 12.8% of revenue – a total of $746,000,000 last quarter (again just in stock based compensation).

Execution 40

Execution GAAP Deming System 40

Harvard Business Review

NOVEMBER 15, 2016

need to abide by GAAP accounting standards, which rely on strict rules, while those operating in Europe follow IFRS accounting standards, which are driven by broad principles. Should insurance companies have a say in how the algorithms are coded? This is not, of course, a completely new problem. For example, firms operating in the U.S.

Ethics 8

Ethics Morale GAAP Learning-by-Doing 8