E
Earnings Management may be conducted by companies and not always be detected by auditors. It may even be referred to as “income smoothing” and therefore it is not possible to identify the degree and type of earnings management. One view held in the United States is that the distortion of the application of GAAPs, and Meisel (undated) suggests that it has been with us for many years. Because of the importance of calculating the EPS, a complete and workable definition is required. The accounting standard setters are currently examining the issue, and the SEC is focusing on quarter-end transactions or accounting adjustments done primarily or solely by public companies to meet desired financial metrics (Scheck 2020).
Earnings Per Share (EPS) is ...
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