盈余管理的时间和误区[19p].pptVIP

Earnings Management:Practice and Pitfalls Philip Livingston President and CEO Financial Executives International What is Earnings Management? The process of establishingstakeholder expectations and achieving the result through legitimate and/or illegitimate methods Why Are We Talking About It? Illegitimate methods CLOUD financial reporting transparency Contrary to unbiased reporting Result is low quality earnings even if the target is reached. U.S. capital markets placed a premium on predictability SEC action in 1998 Legitimate Earnings Management Planning discretionary spending Marketing and advertising Research and development Employee meetings, TE Legitimate Earnings Management Special Quarter-End Sales Price reductions Sales force incentives Quantity/truckload offers to customers Shipments Hold or Push Daily management of revenue Add warehouse workers Schedule factory and warehouse overtime Legitimate Earnings Management Instituting a hiring freeze, temporarily avoiding: Hiring expense Non-essential salary expense Benefit costs Top Problem Area Revenue accounting manipulation Side deals by salespeople that are undisclosed to accounting – allowances, deductions and credits. Shipments to distributors or intermediaries associated with great uncertainty of sale. Premature recording when right of return exists Payment contingencies tied to other events Invoices that are inconsistent with underlying transactions “Managing the Bottom Line”Past Accounting Practices Merger and Acquisition Reserve Abuses Setting up reserves to cover future operating costs of an acquired company Providing rich reserves that allow for future adjustments that favorably impact earnings Writing-off excessive “in-process RD” to avoid future amortization charges “Managing the Bottom Line”Past Accounting Practices Restructuring Reserve Abuses Providing general restructuring reserves subject to subsequent adjustment Reserving for exit costs that will benefit futur