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Discuss the motives behind earnings management

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Question - The net income (earnings) figure is arguably the most important item reported in the Statement of Profit or Loss and Other Comprehensive Income. Hence, managers are often tempted to resort to the use of various techniques, devices, policies, and schemes to increase or decrease the earnings figure. Discuss the motives behind earnings management and explain some of the methods used by firms to massage their earnings. Cite literature to support.

Reference no: EM133050644

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