| Autor: Ewa Wanda Maruszewska | 211 |
Strony: 211-220
pełen tekst
ACCOUNTING POLICY OF EARNINGS MANAGEMENT – A DISCUSSION
Summary
The management of an entity (including accounting employees) has an ability to use methods, that may influence the presentation of financial position and enterprise’s earnings. Primary method of financial statements’ window-dressing is earnings’ management (also called as smoothing earnings). Earnings’ management is aimed at influencing decision making process made by stakeholders. It does not reduce the information asymmetry and it lowers quality of information provided. Although accounting policy is to standardize the methods of accounting, it is not free from earnings management nowadays.
pełen tekstACCOUNTING POLICY OF EARNINGS MANAGEMENT – A DISCUSSION
Summary
The management of an entity (including accounting employees) has an ability to use methods, that may influence the presentation of financial position and enterprise’s earnings. Primary method of financial statements’ window-dressing is earnings’ management (also called as smoothing earnings). Earnings’ management is aimed at influencing decision making process made by stakeholders. It does not reduce the information asymmetry and it lowers quality of information provided. Although accounting policy is to standardize the methods of accounting, it is not free from earnings management nowadays.