Earning Management
| Earning Management | Quality of Accounting Information | | Nur Mohammad Arif | 20-Mar-13 |
A report on
Earning Management & Quality of Accounting Information
Subject: Accounting Principles
By | Nur Mohammad Arif | 131-0647-660 |
Earning Management & Quality of Accounting Information
ABSTRACT: This group report contains a simple descriptive analysis on the Earning Management and Quality of Accounting information for users. Business, Investments, Profit & Loss these words are so much related when we say Accounting. In doing business it’s important to keep the records for different purposes i.e. decision making, attracting investors. However, managers often try to do some engineering with the accounting information. Earnings management is a strategy used by the management of a company to deliberately 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. To make the report trustworthy, it’s the responsibility of managers to maintain certain qualities & standards. The Financial Accounting Standards Advisory Board (FASB) establishes and maintains generally accepted accounting principles (GAAP) that set forth the qualities and standards of accounting information. Unless a company’s accounting records meet GAAP standards, an auditor cannot certify the company’s records.
Introduction
“Earning Management” refers to those accounting practices that may follow the letter of the rules of fundamental rules of accounting practices but unethically misrepresented to the users of accounting information. For the personal interest managers often try to show outstanding performance of the business and use the strategic way to falsify Income, Assets or Liabilities. Earning Management as generally understood refers to systematic misrepresentation of the true income and assets of corporations or other organizations. "Creative accounting" is at
A report on
Earning Management & Quality of Accounting Information
Subject: Accounting Principles
By | Nur Mohammad Arif | 131-0647-660 |
Earning Management & Quality of Accounting Information
ABSTRACT: This group report contains a simple descriptive analysis on the Earning Management and Quality of Accounting information for users. Business, Investments, Profit & Loss these words are so much related when we say Accounting. In doing business it’s important to keep the records for different purposes i.e. decision making, attracting investors. However, managers often try to do some engineering with the accounting information. Earnings management is a strategy used by the management of a company to deliberately 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. To make the report trustworthy, it’s the responsibility of managers to maintain certain qualities & standards. The Financial Accounting Standards Advisory Board (FASB) establishes and maintains generally accepted accounting principles (GAAP) that set forth the qualities and standards of accounting information. Unless a company’s accounting records meet GAAP standards, an auditor cannot certify the company’s records.
Introduction
“Earning Management” refers to those accounting practices that may follow the letter of the rules of fundamental rules of accounting practices but unethically misrepresented to the users of accounting information. For the personal interest managers often try to show outstanding performance of the business and use the strategic way to falsify Income, Assets or Liabilities. Earning Management as generally understood refers to systematic misrepresentation of the true income and assets of corporations or other organizations. "Creative accounting" is at