There is evidence (Black, Christensen, Joo and Schmardebeck ) suggesting that managers prefer to meet expectations based

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There is evidence (Black, Christensen, Joo and Schmardebeck ) suggesting that managers prefer to meet expectations based on neutral reporting of solid operational performance.

They also found that, conditional on missing analysts’ expectations after employing both accruals and real earnings management, firms are more likely to report non-GAAP earnings.

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https://www.researchgate.net/publication/310512924_The_Relation_Between_Earnings_Management_and_Non-GAAP_Reporti

Discuss whether this is a reason for not permitting the reporting of APMs in Annual Reports.

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Financial Accounting And Reporting

ISBN: 9781292255996

19th Edition

Authors: Barry Elliott, Jamie Elliott

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