Earnings Management Through Excessive Reserves and Provisions

Felix I. Lessambo (fgrlessambo@aol.com)
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Felix I. Lessambo: Fordham University

Chapter Chapter 25 in Financial Statements, 2022, pp 421-431 from Springer

Abstract: Abstract Earning management can be achieved through (i) accrual management, (ii) manipulation of real economic activities, and (iii) misclassification of items with the income statements, or the combination of the aforementioned techniques. Accrual-based earnings management is achieved by changing the accounting methods or estimates used when presenting a given transaction in the financial statements. Real activities manipulation is a purposeful action to alter reported earnings in a particular direction, and is achieved by changing the timing or structuring of an operation, investment, or financing transaction with suboptimal business consequences.

Keywords: Non-GAAP; EBITDA; EBIT (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/978-3-031-15663-2_25

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