Traditional whole need of an organisation .It does not

Traditional
financial reporting is the process of producing statements that disclose an
organisations financial status to management ,Investors and competitors.The
main reports in a financial statements are Balance sheet statement, Income
statement,Cash flow statement and shareholders equity.This report are produced
annually ,Quaterly or monthly according to the need of the user of this
statement However the traditional statement of a company does not capture the
whole need of an organisation .It does not cover the human aspects and cost
which is very dynamic , It does not cover the activities  of competitors and how it affect the whole
industry, Traditional reporting does not also cover government activities and
regulations .It only covers Tax but does not cover new govt policies which
changes everyday. The traditional financial reporting does not cover the trends
of new business with the help of technology businesses world wide operate more
on Intangible assets.The traditional financial reporting does not capture
Corporate values and Corporate bureaucracies. It does not consider Corporate
social responsibilitiesCSR. Even though Traditional financial reporting
covers all aspect of cash flow it still can be easily Manipulated by both Top
management and average accountant working in the firm. like the classic case of
Enron. Where the whole financial statement was manipulated and a lot of people
lost there life savings.If most investors at Enron at the time knew that all
the Financial Report at the time were doctored to show huge profit I doubt if
the will put there hard earned money into a sinking ship. With todays
businesses  going digital. Emphasis are
no longer placed on Tangible assets but rather on Intangible assets  examples is like in the E-Sports and E-games.
These are virtual industries that are huge with huge industries and fanbase
.This individuals sit in there homes  and
do what the know how to do best and other game freaks who watch and enjoy the
games subscribe just to watch them play .They have rankings and Professionals
players .This men play different E-Games for 12 hours  everyday. It is really grueling and  there ratings change swiftly .The have
monthly ratings and yearly ratings.The competition is tough and the stakes are
very high. With adverts bookings and huge customer appetite some players has as
much as 250 million viewers on You tube and another 4 millon subscribers on You
tube alone.A normal Traditional Financial Report can not cover every activity
on a You tube subsciber.In the cause of playing example “League of Legends
“The professional players gets Goodwill donations from Brand ambassadors
,Game fans etc. These donations come in randomly as he plays every hour, These
new form of business is very fast and dynamic for the financial statement
analysis.

 

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