L19 Notes_Part_20 - Chapter 15 P3 Earnings Management Each...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
7 Ways to reduce earnings quality Also known as “financial shenanigans” Record revenue too soon or of questionable quality Recording bogus revenue Boosting income with one time gains Shifting current expenses to a later or earlier period Failing to record or improperly reducing liabilities Overly conservative to be aggressive later: Shifting current revenue to a later period Shifting future expenses to the current period as a special charge.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 15 - P3 Earnings Management Each of the following techniques for managing earnings was described in the chapter: “Big Bath” charges Write off of acquired assets “Cookie Jar” reserves Abuse of materiality Questionable revenue recognition For each of the following examples of earnings management, state which technique is being used and suggest a method of resolving the issue with management:...
View Full Document

This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

Page1 / 2

L19 Notes_Part_20 - Chapter 15 P3 Earnings Management Each...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online