A fund manager states, I refuse to buy any company that makes a voluntary accounting change, since

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A fund manager states, “I refuse to buy any company that makes a voluntary accounting change, since it’s certainly a case of management trying to hide bad news.” Can you think of any alternative interpretation?

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Business Analysis Valuation Using Financial Statements

ISBN: 978-1111972301

5th edition

Authors: Paul M. Healy

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Question Posted: Feb 11, 2015 02:43 AM

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A fund manager states, I refuse to buy any company that makes a voluntary accounting change, since

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One of the pitfalls in accounting analysis arises when analysts attribute all changes in a firms accounting policies and accruals to earnings manageme...View the full answer

Business Analysis Valuation Using Financial Statements

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