Investors know the value of being anticipatory. In a world characterized by exponential change, the accounting industry has an opportunity to incorporate that same mindset into everyday practices and procedures — in more ways than one.
The Netflix Paradox
The field of accounting has traditionally labored under a challenging paradox when it comes to reporting organizations’ financial activity — using past performance as one gauge of future prospects. An incident involving Netflix this past summer illustrates that — and a broader issue — perfectly.
On the one hand, the entertainment giant turned in a relatively poor quarterly earnings report. Nonetheless, Netflix stock jumped a remarkable 18 percent.
>>Continue Reading the Full Article