PDF (Español (España))
FLIP
HTML (Español (España))
This journal is licensed by a Creative Commons Attribution License (CC BY-NC-SA 4.0) Attribution-Non Commercial 4.0 International. For the CC licenses, the principle isthe creative freedom. This system complements the copyright without opposing it, conscious of its importance in our culture. The content of the articles is the responsibility of each author, and does not compromise in any way, to the journal or the university. It allows the transmission and reproduction of titles, abstracts and full content, with academic, scientific, cultural ends, provided acknowledgment of the respective source. This work cannot be used for commercial purposes.
They journal does not charge authors for submission or publication.
Abstract
Discuss the implications of materiality of financial information on “earnings management”. Imply the content description and analysis of FASB Accounting Standards Codification™. The Professional View is used to confirm the absence of materiality guidelines in the US GAAP. Materiality, importance and significance are terms used to indicate the materiality consideration in the Codifications. The main conclusions are concerned to, first, the internal and external determinants and motives influence the practices of “earnings managements”, and second US GAAP do not offer well defined guidelines to apply materiality on decision making.
References
Baralexis, S. (2004). Creative accounting in small advancing countries: the Greek case. Managerial Auditing Journal, 19(3), 440-461.
Ben-Amar and Missonier-Piera. (2008). Earnings management by friendly takeover targets. International Journal of Managerial Finance, 4(3), 232-243.
Chen, K., Lin, K. and Zhou, J. (2005). Audit quality and earnings management in Taiwan IPO firms. Managerial Auditing Journal, 20(1), 86-104.
Coté, D. and Qi, R. (2005). Honest EPS: a measure of GAAP earnings relative to pro forma earnings. International Journal of Managerial Finance, 1(1), 25-35.
Dechow, P. M. and Skinner D. (2000). Earnings management reconciling the views of accounting academics, practitioners, and regulators. Accounting Horizon,14( 2), 235-250.
Dechow, P., Sloan, R. and Sweeney, A. (1996). Causes and consequences of earnings manipulations: An analysis of firms subject to enforcement actions by SEC. Contemporary Accounting Research, 13(1), 1-36.
Ebrahim, A. (2007). Earnings management and board activity: An additional evidence. Review of Accounting and Finance, 6(1), 42-58.
Elias, R. (2004). The impact of corporate ethical values on perceptions of earnings management. Managerial Auditing Journal, 19(1), 84-98.
Financial Accounting Foundation and American Accounting Association (FASB). (s. f.). Codification to Accounting Faculty and Students. Retrieved from http://aaahq.org/FASB/Access.cfm.
Financial Accounting Standards Board (FASB). (1980). Qualitative characteristics of accounting information. In Statement of Financial accounting Concepts No. 2. Stamford, CT: FASB.
Fischer M., and Rozenweig, K. (1995). Attitudes os students and accounting practitioners concerning the ethical acceptability of earnings management. Journal of Business Ethics, 14, 433-444.
Gaver, J., K. M. and Austin, J.R. (1995). Additional evidence on bonus plans and income management. Journal of Accounting & Economics, 19(1), 3-28.
Gaver, J. J. and Paterson, J.S. (2001). The association between external monitoring and earning management in the property-casual insurance industry. Journal of Accounting Research, 39(2), 269-282.
Guang, L., He, D. and Yang, D. (2006). Auditing, integral approach to quarterly reporting, and cosmetic earnings management. Managerial Auditing Journal, 21(6), 569-581.
Healy, P. M. (1985). The effect of bonus schemes on accounting decisions. Journal of Accounting and Economics, 7, 85-107.
Healy, P. M. and Wahlen, J. M. (December, 1999). A review of the earning management literature and its implications for standard setting. Accounting Horizons, 13(4), 363-365.
Jensen, M. and Meckling, W.H. (1976). Theory of the firm: managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305-360.
Johl, S., Jubb, C. and Houghton, K. (2007). Earnings management and audit opinion: evidence from Malaysia. Managerial Auditing Journal, 22(7), 688-715.
Kanagaretnam, K., Lobo, G. and Mathieu, R. (2004). Earnings management to reduce earnings variability: Evidence from bank Loan loss provisions. Review of Accounting and Finance, 3(1), 128-148.
Kinney, W. (1986). Audit technology and preferences for auditing standards. Journal of Accounting and Economics, 8(1), 73-89.
Koumanakos, E., Costas, S. and Georgiopoulos, A. (2005). Firms acquisition and earnings management: evidence from Greece. Managerial Auditing Journal, 20(7), 663-678.
Levitt, A. (1998). The numbers game. The CPA Journal, 68, 14-19.
Moore, M. L. (Spring 1973). Management changes and discretionary accounting decisions. Journal of Accounting Research, 11(1),100-107.
Niu, F. (2006). Corporate governance and the quality of accounting earnings: a Canadian perspective. International Journal of Managerial Finance, 2(4), 302-327.
Noronha, C., Zeng, Y. and Vinten, G. (2008). Earnings management in China: an exploratory study. Managerial Auditing Journal, 23(4).
Patterson, R. G. (October, 1967). Materiality and the economic environment. The Accounting Review, October, 772-774.
Rahman, R., Abdul, R. and Ali, M. H. F. (2006). Board, audit committee, culture and earnings management: Malasyan evidence. Managerial Auditing Journal, 21(7), 783-804.
Reverte, C. (2008). Institutional differences in EU countries and their relationship with earnings management differences: Implications for the pan-European stock market. Journal of Accounting and Organizational Change, 4(2), 182-200.
Sevin, S. and Schroeder, R. (2005). Earnings management: Evidence from SFAS No. 142 Reporting. Managerial Auditing Journal, 20(1), 47-54.
Stolowy, H. and Breton, G. (2003). Accounts manipulation: A literature review and proposed conceptual framework. Montreal: University of Quebec, Montreal and HEC Mgmt. School.
Thompson, J.H. (March,1993). Quantitative guidelines: Guidance based on professional pronouncements. The CPA Journal, 63(3)48-52.
Thompson J.H., Hodge, T.G. and Worthington, J.S. (July, 1990). An inventory of materiality guidelines in accounting literature. The CPA Journal, 60(7), 50.
Watts R.L. and Zimmerman, J.L. (1986). Positive accounting theory. Englewood Cliffs, NJ: Prentice-Hall.
Weber, M. (2006). Sensitivity of executive wealth to stock price, corporate governance and earnings management. Review of Accounting and Finance, 5(4), 321-354.
Reference by
