МЕТОДИ ЗА УПРАВЛЕНИЕ НА ПЕЧАЛБАТА
METHODS FOR EARNINGS MANAGEMENT

Author(s): Lilyana Kamburova
Subject(s): Economy, Accounting - Business Administration
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: earnings management; pro-forma earnings
Summary/Abstract: Earnings management involves a large set of methods that help managers to guide the company's financial results in the direction of investor expectations. Earnings can be roughly divided into two components: the cash flow component and the accrual component, and the manipulation of either of these two components will affect the earnings number. Earnings can be managed both through the manipulation of real economic transactions and through accrual management. In addition to managing the financial result derived in accordance with the accounting rules, managers can guide their investors' expectations by disclosing an alternative financial result – „pro forma“ earnings.

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