In the USA, the practice of making larger provisions for expenses in one year, in order to minimize them in future years. This effectively understates earnings in the present year but overstates them in subsequent years.
Cookies-Jarring is a method where businesses save sales for future periods to ensure consistent growth figures, a practice that is legally permissible but ethically questionable.
Smoothing earnings involves managing and manipulating financial statements to reduce apparent volatility in a company’s earnings over time.
Comprehensive guide to understanding earnings management, including its definition, concrete examples, various types, and implications for financial reporting.
