This course provides an overview of earnings management techniques and their ethical implications. This course covers basics like revenue recognition timing, expense manipulation, provision adjustments, income smoothing, and cost-cutting. This course also addresses more advanced methods such as financial engineering, tax planning, big bath accounting, accounting policy changes, and round-trip transactions. Throughout this course, the ethical considerations inherent in these techniques are addressed through a series of example situations.
Course Publication Date:
August 07, 2024
This course is available with
NO ADDITIONAL FEE if you have an active
self study membership or
all access membership or can be purchased for
$20.00!
| Author: | Kelen Camehl |
| Course No: | ACT-EARNMGMT-27004 |
| Recommended CPE: | 2.00 |
| Delivery Method: | QAS Self Study |
| Level of Knowledge: | Basic |
| Prerequisites: | None |
| Advanced Preparation: | None |
| Recommended Field of Study: | Accounting
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Learning Objectives
- Identify different methods of revenue recognition timing used in earnings management.
- Recognize examples of expense manipulation in financial reporting.
- Distinguish between provision and reserve manipulation techniques.
- Determine the impact of asset valuation adjustments on reported financial performance.
- Differentiate between income smoothing strategies and their effects on financial statements.
- Identify financial engineering techniques in advanced earnings management.
- Distinguish legitimate tax planning from earnings management strategies.
- Determine the impact of big bath accounting on financial reporting.
- Differentiate permissible changes in accounting policies from manipulative adjustments.
- Recognize risks associated with round-trip transactions in earnings management.