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.
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