Earning management is good or not? Introdcution This essay is to examine whether earning management is it good or bad. Though there is so many debate about whether it should be accepted to be good rather than bad, however, this essay will explain the both side of earnings management. Earnings management reduces the quality of financial reporting, it can interfere with the resource allocation in the economy and can bring adverse consequences to the financial market. This essay analyses both, causes
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for and benefits of good earnings management Earnings management is a strategy used by the management of company to manipulate the company’s earnings so that the figures match a pre-determined target. This practice is carried out for the purpose of income smoothing. Thus, rather than years of exceptionally good or bad earnings, companies will try to keep the figures relatively stable by adding and removing cash from reserve accounts. One of the good earnings management activities is describe
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235-250 Earnings Management: Reconciling the Views of Accounting Academics, Practitioners, and Regulators Patricia M. Dechow and Douglas J. Skinner Patricia M. Dechow is an Associate Professor and Douglas J. Skinner is a Professor, both at the University of Michigan. SYNOPSIS: We address the fact that accounting academics often have very different perceptions of earnings management than do practitioners and reguiators. Practitioners and reguiators often see earnings management as pervasive
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Academic Year: 2014/15 Module code: P13505, Level 3 Autumn Semester Module Outline: Auditing, Governance and Scandals (AGS) |Module Convenor |Dr. Kevin Dow, AB474 | |Lectures |Dr. Kevin Dow | | |TH 4:00-5:30, TB 329
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economy, the earning management in capital market becomes one of the hottest issues of general public. Earnings management actually is a process that the management of the firms control the financial report. In this research paper, I will talk about the fundamental of the earnings management, it including the concept and the feature of the earning management as well as the effect of the earnings management. Contents Abstract………………………………………………………………………………..2 Concept of earnings management……………………………………………………
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Introduction Theoretically, earnings management is a technique taken by manager in manipulating accounting transaction in order to achieve some specific objective. This is more likely to occur in few circumstances either the company unable to meet the investor expectation or sometimes also due to several motivation factors. Even though earnings management is often intentionally to misleading information, however it is consider as “allowable but unethical” as long as not lead to fraudulent activity
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Earnings management is the choice by a manager of accounting policies, or real actions that affect earnings, so as to achieve some specific reported earnings objective. Earnings management involves the artificial increase (or decrease) of revenues, profits, or earnings per share figures through aggressive accounting tactics on all earnings. Aggressive earnings management is a form of fraud which differs from reporting error. Most of this happens when management of the companies need to present and
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SUMMARY ON EARNINGS MANAGEMENT Earnings management, is the creative use of different accounting techniques to make financial statements look better. There are two types of earnings management, which may be income increasing (positive EM) and income decreasing (negative management). The modest earnings management has its positive side. View of the role of the signal from the information point of view, earnings management is an internal information management will be communicated to other stakeholders
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Creative accounting and earnings management are euphemisms referring to accounting practices that may follow the letter of the rules of standard accounting practices, but certainly deviate from the spirit of those rules. They are characterized by excessive complication and the use of novel ways of characterizing income, assets, or liabilities and the intent to influence readers towards the interpretations desired by the authors. The terms "innovative" or "aggressive" are also sometimes used. The
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------------------------------------------------- EARNINGS MANAGEMENT IN RELATIE TOT DE BONUSCULTUUR Inhoudsopgave 1. Inleiding 2 1.1 De aanleiding 2 1.2 De probleemstelling en onderzoeksvragen 2 1.3 Onderzoeksopzet en structuurinhoud 3 2. Earnings Management 5 2.1 Definities van earnings management 5 2.2 Motieven voor earnings management 7 2.2.1 De kapitaalmarkt motieven 7 2.2.2 De contractuele motieven 8 2.2.3 De wet- en regelgeving motieven 9 2.3 Meten van earnings management 10 2.3.1
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