Contemporaneous risk factors and the prediction of financial statement fraud. Income smoothing comes into play here because of the fact that potential investors generally like to invest in companies that have a continuous growth pattern. The Accounting Historians Journal 24 1 : 75-91. If confirmed later ahead of enterprise profit, be like, the straight-line method with accelerated depreciation, reduce the proportion of the loss of bad, delayed provision for impairment of long-term investment. Cost manipulation incentives under cost reimbursement: Pension costs for defense contracts. The effect of institutional and cultural factors on the perceptions of earnings management.
Accounting Horizons September : 605-626. Do firms manage earnings to meet dividend thresholds. Pressure to meet short-term expectations of Wall Street or year-end financial targets may be a cause of creative accounting activity by the. Accounting Horizons December : 91-102. It is a very critical part of financial accounting because it provides information for the users of financial statements to interpret and come to a conclusion about the performance of the company. Directors' recommendations on takeover bids and the management of earnings: Evidence from Australian takeovers.
Journal of Accounting and Economics February : 21-36. The allowance for uncollectible accounts, conservatism, and earnings management. The Academy of Management Journal 49 3 : 483-500. Research design issues in earnings management studies. Is enhanced audit quality associated with greater real earnings management? Real and accrual-based earnings management in the pre- and post-Sarbanes-Oxley periods.
Accounting, Organizations and Society 14 5-6 : 577-587. The Accounting Review Supplement: Quality of Earnings Conference : 175-202. Perceptions of earnings quality: What managers need to know. The incidence of accounting changes and characteristics of firms making accounting changes. Regulation and the interdependent roles of managers, auditors, and directors in earnings management and accounting choice.
The Accounting Review October : 372-378. Review of Accounting Studies 19 3 : 1047-1077. Insiders and corporate income streams. Discussion of the role of accounting in financial disclosure. External Audits External audits do not entirely prevent unauthorized creative accounting, but external auditors with extensive experience often prove more capable of detecting creative accounting, according to a research study in the February 2013 issue of the International Journal of Business and Management. A test of the extended functional fixation hypothesis. Accounting, Organizations and Society 23 1 : 77-79.
The Financial Numbers Game: Detecting Creative Accounting Practices. The Accounting Review January : 122-126. Earnings Management Techniques Now that you're familiar with some of the reasons why earnings management occurs, let's look at some of the legal techniques that are used. How much will firms pay for earnings that do not exist? Journal of Accounting Education 18 4 : 369-376. The Accounting Review April : 385-400. Journal of International Accounting Research 12 1 : 1-27. Can stock recommendations predict earnings management and analysts' earnings forecast errors? Discussion of Detecting earnings management: A new approach.
Discussion of the significance of selected accounting procedures: A statistical test. Management decisions and formulation of compensation policies are always stated in terms of the earnings objectives. Evidence from European private firms. The Accounting Review November : 1713-1747. The income smoothing hypothesis revisited.
Management Accounting October : 64 and 70. Issues in Accounting Education November : 363-381. Accounting, Organizations and Society 11 3 : 233-252. Journal of Accounting Research March : 113-143. Earnings Management: An Executive Perspective. The Accounting Review October : 443-465.
The timing of asset sales and earnings manipulation. Accounting Horizons December : 303-314. But this trend has also resulted in some companies resorting to manipulative practices. Earnings management and capital resource allocation: Evidence from China's accounting-based regulation of rights issues. Earnings management and the revelation principle. Accounting, Organizations and Society 19 2 : 181-192.
Whistle blowers: Saints of secular culture. Management Accounting August : 63. The Accounting Review July : 368-379. Strategic Finance April : 32-38. Formal policies and penalties serve as a mechanism for correcting the behavior of employees that disregard the policy with some form of punishment short of firings. The behavioral foundations of stewardship accounting and a proposed program of research: What is accountability? The Accounting Review July : 524-527. Income manipulation and the purchase-pooling choice.