Editing Business model (section)

== Applications ==
[[Thomas W. Malone|Malone]] et al.<ref>[https://ssrn.com/abstract=920667 "Do Some Business Models Perform Better than Others?"], Malone et al., May 2006.</ref> found that some business models, as defined by them, indeed performed better than others in a dataset consisting of the largest U.S. firms, in the period 1998 through 2002, while they did not prove whether the existence of a business model mattered.

In the healthcare space, and in particular in companies that leverage the power of Artificial Intelligence, the design of business models is particularly challenging as there are a multitude of value creation mechanisms and a multitude of possible stakeholders. An emerging categorization has identified seven archetypes.<ref>{{Cite journal|title= Artificial Intelligence as a Growth Engine for Health Care Startups: Emerging Business Models|journal = California Management Review|volume = 61|issue = 2|pages = 59–83| last1=Garbuio|first1=Massimo|last2=Lin| first2=Nidthida |s2cid = 158219917|doi= 10.1177/0008125618811931|year = 2018}}</ref>

The concept of a business model has been incorporated into certain [[accounting]] standards. For example, the [[International Accounting Standards Board]] (IASB) utilizes an "entity's business model for managing the financial assets" as a criterion for determining whether such assets should be measured at [[amortization (business)|amortized cost]] or at [[fair value]] in its International Financial Reporting Standard, [[IFRS 9]].<ref>{{cite book| page=A312| title=International Financial Reporting Standard 9: Financial Instruments| publisher=[[International Accounting Standards Board]]| date=October 2010}}</ref><ref>{{cite web|title=The beginning of the end for IAS 39 - Issue of IFRS 9 regarding Classification and Measurement of Financial Assets|publisher=[[Deloitte & Touche]]|url=http://www.deloitte.com/view/en_NZ/nz/services/audit/c2d5f3d86b325210VgnVCM200000bb42f00aRCRD.htm|date=November 2009|access-date=2011-06-03|archive-date=2014-02-23|archive-url=https://web.archive.org/web/20140223130714/http://www.deloitte.com/view/en_NZ/nz/services/audit/c2d5f3d86b325210VgnVCM200000bb42f00aRCRD.htm|url-status=dead}}</ref><ref>{{cite web|title=Business Models Matter (for Accounting, That Is)|url=http://www.cfo.com/article.cfm/14455415/c_14455495?f=home_todayinfinance|publisher=cfo.com|access-date=2011-06-03|archive-url=https://web.archive.org/web/20120320062116/http://www.cfo.com/article.cfm/14455415/c_14455495?f=home_todayinfinance|archive-date=2012-03-20|url-status=dead}}</ref><ref>{{cite web|title=An optimist sees the opportunity in every difficulty: is IFRS 9 an opportunity or a difficulty?|url=http://www.ey.com/LU/en/Newsroom/PR-activities/Articles/article_2011-An-optimist-sees-the-opportunity-in-every-difficulty--is-IFRS-9-an-opportunity-or-a-difficulty-|publisher=[[Ernst & Young]]|date=December 2010|access-date=2011-06-03|url-status=dead|archive-url=https://web.archive.org/web/20120405074042/http://www.ey.com/LU/en/Newsroom/PR-activities/Articles/article_2011-An-optimist-sees-the-opportunity-in-every-difficulty--is-IFRS-9-an-opportunity-or-a-difficulty-|archive-date=2012-04-05}}</ref> In their 2013 proposal for accounting for financial instruments, the [[Financial Accounting Standards Board]] also proposed a similar use of business model for classifying financial instruments.<ref>{{cite web|title=FASB Exposure Draft: Recognition and Measurement of Financial Assets and Financial Liabilities|page=174|date=April 12, 2013|access-date=2013-06-11|url=http://www.fasb.org/cs/BlobServer?blobkey=id&blobnocache=true&blobwhere=1175826620388&blobheader=application%2Fpdf&blobcol=urldata&blobtable=MungoBlobs|publisher=[[Financial Accounting Standards Board]]|archive-date=2016-03-04|archive-url=https://web.archive.org/web/20160304062218/http://www.fasb.org/cs/BlobServer?blobkey=id&blobnocache=true&blobwhere=1175826620388&blobheader=application%2Fpdf&blobcol=urldata&blobtable=MungoBlobs|url-status=dead}}</ref> The concept of business model has also been introduced into the accounting of [[deferred taxes]] under [[International Financial Reporting Standards]] with 2010 amendments to IAS 12 addressing deferred taxes related to investment property.<ref>{{cite book|title=International Accounting Standard 12: Income Taxes| page=A508| date=December 31, 2010|publisher=[[International Accounting Standards Board]]}}</ref><ref>{{cite web|title=IASB issues amendments to IAS 12|url=http://www.iasplus.com/iasplus/1101amendtoias12.pdf|publisher=[[Deloitte & Touche]]|date=January 2010|access-date=2011-06-03|archive-url=https://web.archive.org/web/20110909130607/http://www.iasplus.com/iasplus/1101amendtoias12.pdf|archive-date=2011-09-09|url-status=dead}}</ref><ref>{{cite web| title=Amendments to IAS 12:Income Taxes| url=http://www.ey.com/Publication/vwLUAssets/Supplement_93_GL_IFRS/$File/Supplement_93_GL_IFRS.pdf| publisher=[[Ernst & Young]]| date=December 2010| access-date=2011-06-03| archive-url=https://web.archive.org/web/20111020221018/http://www.ey.com/Publication/vwLUAssets/Supplement_93_GL_IFRS/$FILE/Supplement_93_GL_IFRS.pdf| archive-date=2011-10-20| url-status=dead}}</ref>

Both IASB and FASB have proposed using the concept of business model in the context of reporting a lessor's [[lease]] income and lease expense within their joint project on accounting for leases.<ref>{{cite web|title=Exposure Draft:Leases|url=http://www.ifrs.org/NR/rdonlyres/C03C9E95-822E-4716-81ED-04B9CC4943BE/0/EDLeasesStandard0810.pdf|publisher=[[International Accounting Standards Board]]|page=31|date=August 2010|access-date=2011-06-03|archive-url=https://web.archive.org/web/20110905010911/http://www.ifrs.org/NR/rdonlyres/C03C9E95-822E-4716-81ED-04B9CC4943BE/0/EDLeasesStandard0810.pdf|archive-date=2011-09-05|url-status=dead}}</ref><ref>{{cite web |title=Exposure Draft: Leases |url=http://www.fasb.org/cs/BlobServer?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175821125393&blobheader=application%2Fpdf |publisher=[[Financial Accounting Standards Board]] |page=29 |date=August 17, 2010 |access-date=2011-06-03 |url-status=dead |archive-url=https://web.archive.org/web/20110408104000/http://www.fasb.org/cs/BlobServer?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175821125393&blobheader=application%2Fpdf |archive-date=2011-04-08 }}</ref><ref>{{cite web| title=Project Update: Leases—Joint Project of the FASB and the IASB| url=http://www.fasb.org/cs/ContentServer?c=FASBContent_C&pagename=FASB%2FFASBContent_C%2FProjectUpdatePage&cid=900000011123| publisher=[[Financial Accounting Standards Board]]| date=August 1, 2012| access-date=2012-08-02| archive-date=2011-01-05| archive-url=https://web.archive.org/web/20110105043636/http://www.fasb.org/cs/ContentServer?c=FASBContent_C&pagename=FASB%2FFASBContent_C%2FProjectUpdatePage&cid=900000011123| url-status=dead}}</ref><ref>{{cite web|title=Exposure Draft: Leases|date=May 2013|access-date=2013-06-11|publisher=[[International Accounting Standards Board]]|url=http://www.ifrs.org/Current-Projects/IASB-Projects/Leases/Exposure-Draft-May-2013/Documents/ED-Leases-Standard-May-2013.pdf|page=30|archive-url=https://web.archive.org/web/20131126152543/http://www.ifrs.org/Current-Projects/IASB-Projects/Leases/Exposure-Draft-May-2013/Documents/ED-Leases-Standard-May-2013.pdf|archive-date=2013-11-26|url-status=dead}}</ref><ref>{{cite web|title=FASB Exposure Draft: Leases|date=May 16, 2013|access-date=2013-06-11|publisher=[[Financial Accounting Standards Board]]|url=http://www.fasb.org/cs/BlobServer?blobkey=id&blobnocache=true&blobwhere=1175826935767&blobheader=application%2Fpdf&blobcol=urldata&blobtable=MungoBlobs|page=82|archive-url=https://web.archive.org/web/20130627102515/http://www.fasb.org/cs/BlobServer?blobkey=id&blobnocache=true&blobwhere=1175826935767&blobheader=application%2Fpdf&blobcol=urldata&blobtable=MungoBlobs|archive-date=June 27, 2013|url-status=dead}}</ref> In its 2016 lease accounting model, [[IFRS 16]], the IASB chose not to include a criterion of "stand alone utility" in its lease definition because "entities might reach different conclusions for contracts that contain the same rights of use, depending on differences between customers' resources or suppliers' business models."<ref>{{cite book|title=IFRS 16 Leases: Basis for Conclusions|page=39|publisher=[[International Accounting Standards Board]]|date=January 2016}}</ref> The concept has also been proposed as an approach for determining the measurement and classification when accounting for [[Insurance policy|insurance contracts]].<ref>{{cite web|title=Application of business model to insurance contracts|publisher=HUB global insurance group|url=http://www.gnaie.net/sites/default/files/library/03%20Business%20model%20IWG%20final.pdf|access-date=2011-06-03|url-status=dead|archive-url=https://web.archive.org/web/20110723234443/http://www.gnaie.net/sites/default/files/library/03%20Business%20model%20IWG%20final.pdf|archive-date=2011-07-23}}</ref><ref>{{cite web| title=FASB Education Session – Insurance Contracts: PricewaterhouseCoopers Summary of the Meeting|url=http://www.pwc.com/gx/en/insurance/IFRS/assets/FASB-meeting-notes-020910.pdf| date=February 9, 2010| publisher=[[PricewaterhouseCoopers]]| access-date=2011-06-03}}</ref> As a result of the increasing prominence the concept of business model has received in the context of financial reporting, the [[European Financial Reporting Advisory Group]] (EFRAG), which advises the [[European Union]] on endorsement of financial reporting standards, commenced a project on the "Role of the Business Model in Financial Reporting" in 2011.<ref>{{cite web|title=EFRAG calls for candidates for an Advisory Panel on the proactive project on the Role of the Business Model in Financial Reporting|url=http://www.efrag.org/Front/n1-664/NewsDetail.aspx|date=December 15, 2010|publisher=European Financial Reporting Advisory Group|access-date=2011-06-03|archive-url=https://web.archive.org/web/20110624000853/http://www.efrag.org/Front/n1-664/NewsDetail.aspx|archive-date=June 24, 2011|url-status=dead}}</ref>