‘Financial reporting has lost almost all its relevance’
This episode of The Ticker podcast comes to you from the Citadel Securities trading post on the floor of the NYSE.
Companies don’t make money the way they once did. Intangible assets like patents, brands and R&D drive value. Yet you wouldn’t know it reading a standard financial report – which hardly anyone does anymore anyway. The average publicly traded firm has its annual report downloaded from Edgar 28.9 times in the five days followings its filing.
Earnings, shmernings. On this week’s Ticker podcast, iconoclast accountant Baruch Lev reconstructs the balance sheet – and offers tips on how to systematically share with investors the sort of information they really want (hint: think ‘strategic assets’).