31-01-2013, 12:39 PM
Earnings Quality and Earnings Management: The Role of Accounting Accruals
Abstract:
Accruals are at the heart of Financial Reporting.Accruals shift or adjust the recognition of cash flows over time, so that the adjusted number, i.e earnings, better measures firm performance.As a result, accruals play a major role in the determination of the quality of reported earnings. This studt provides an overview of the role of accruals in financial reporting.In the empirical analysis, the manner in which accruals adjust cash flows is examined for respectively the predition of future cash flows, growth and losses