Fraudulent accounting practice of inflating earnings and diminishing expenditures with misapplication of accounting principles and creative financial engineering techniques such as premature recognition of revenue and 'cookie jar reserves.' According to the management accountants Paul Healy and James Wahlen, this practice occurs "when managers use judgment in financial reporting and in structuring transactions to alter financial reports to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reporting accounting numbers." And, according to the financial analyst Hewitt Heiserman, Jr., "managed earnings misrepresent the inherently cyclical nature of business."
Related information about managed earnings:
- Managed Earnings: Definition from Answers.com
corporate profits made to appear higher than they actually were by accounting devices, usually with the aim of meeting analysts projected earnings per.
- What is managed earnings? definition and meaning
Definition of managed earnings: Fraudulent accounting practice of inflating earnings and diminishing expenditures with misapplication of accounting principles ...
- Managed Earnings - Financial Dictionary - The Free Dictionary
The practice of the managers of a company performing any action that misrepresents the company's financial health. The practice of managed earnings may ...
- Lies, Damned Lies, and Managed Earnings The crackdown is here ...
Aug 2, 1999 ... Lies, Damned Lies, and Managed Earnings The crackdown is here. The nation's top earnings cop has put corporate America on notice: Quit ...
- How Earnings Are Managed Through Discretionary Accruals and ...
managed earnings and income objectives.2 Baber, Fairfield, and Haggard (1991 ) ... managed earnings cannot meet the target and are significantly negative ...
- managed earnings - Invest Definition
managed earnings definition: Corporate earnings that have been manipulated in order to produce a desired result. Earnings can be managed utilizing a variety ...
- CFOs Concede Earnings are 'Managed': Study — US Business ...
Jul 19, 2012 ... A study by four prominent business school professors on earnings quality shows that 'managed' earnings are not a figment of short-seller ...
- How Are Earnings Managed? Examples from Auditors
Income-decreasing example: A client managed earnings by not shipping product that was available for shipment merely because their quarter then ending had ...