Ch04 - Income statement classification isolate irregular...

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Chapter 04 Slide 5 Pro forma – not mandated by GAAP Why might managers manipulate reported earnings? Maximize stockholders equity Also, to hit target for bonus, stock options How might managers manipulate reported earnings? Excelerate revenues Decelerate expenses
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Unformatted text preview: Income statement classification isolate irregular items out Earnings management is not fraud manipulate financial statements Slide 16 Examples of component: Subsidy Group of assets Losses have tax benefit Gains have tax expense...
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This note was uploaded on 11/08/2011 for the course ECON 102 taught by Professor Smith during the Spring '11 term at Saddleback.

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