Earning Management

Yesterday, I learned about earning management. I got the topic from management control system class.

Actually, managers can increase or dicrease earning, why? The answer is companies have a liability to provide and distribute dividends to shareholder and bonuses to owner. So, when managers want increased earning, they can reduce the expense (moved to next year) or to change the method used, such as depreciation. But, when managers want dicreased earning, they can increase the expense (entering next year to this year) or recognize revenue in the future at the moment.

My first time

Yeah, this is the first time I write something in here. Thx for someone who create this blog for me (read : my good boy). I tried to put into practice the knowledge what I learned. So, I need criticism and suggestions to improve the ability. Come and join me :)