Quality of Earnings: Window Dressing, Creative Financial Practices and Issues Related to Quality of Disclosures in Reported Earnings
Window dressing of financial statements is resorted to by the managements to portray a rosier performance and financial position of the company than actuals to suit their motives. An analyst needs to beat window dressing for a meaningful assessment of the quality of earnings.
This chapter seeks to enable you to develop knowledge and understanding of:
What is quality of earnings and its significance in evaluating corporate performance.
Limitations of financial statements caused ...