HBR: Why We Need to Update Financial Reporting for the Digital Era
The Harvard Business Review article by Vijay Govindarajan, Shivaram Rajgopal, and Anup Srivastava, Why We Need to Update Financial Reporting for the Digital Era, makes the following statement:
It’s clear to us from our research and from these interviews that the time has come for investor bodies and companies to rethink the financial reporting model from scratch.
While the authors say that the entire financial reporting model needs to be rethought from scratch, they also say that will not happen any time soon:
CFOs realize the growing limitations of the current financial reporting model. They are, however, extremely pessimistic about whether the model can be fixed within the current regulatory regime.
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