This course defines earnings management and then introduces and illustrates the two basic forms: real earnings management and accruals earnings management.

Learning Objectives
  • Discover and define earnings management.
  • Explore and differentiate between real earnings management and accruals earnings management.
  • Identify the four general areas where accruals earnings management is practiced and be able to recognize examples of each.
  • Explore and explain why earnings management is practiced.
  • Identify and list and identify the popular strategies used by companies to practice earnings management.
Last updated/reviewed: August 9, 2023

Included In Certifications

This course is included in the following Certification Programs:

9 CoursesFinancial Reporting and Analysis Certification

  1. Introduction to the Financial Statements and the Environment of Financial Reporting
  2. Preparing Financial Statements
  3. Reading and Analyzing Financial Statements
  4. Time Value of Money - Concepts and Applications
  5. Classification, Debt and Equity
  6. Current Assets and Asset Valuation
  7. Equity Investments and Long-lived Assets
  8. Earnings Management
  9. Ethics and Earnings Management
2 Reviews (9 ratings)

Reviews

4
Anonymous Author
Earnings Management is intentional use of legitimate management discretion to influence the financial statements to achieve a financial reporting goal pursued by management.
4
Anonymous Author
Really interesting topic with real life examples. Really liked it and easy to follow. Liked the information provided.
Prerequisites
Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Earnings Management6:20
  Common Real EM Methods10:21
  Accruals Earnings Management12:49
  Examples11:12
  Earnings Management: Why, How and Common Strategies23:30
  Summary2:22
CONTINUOUS PLAY
  Earning Management1:06:34
SUPPORTING MATERIAL
  Slides: Earnings ManagementPDF
  Earnings Management Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam