Earnings management can be defined as "intervention deliberately by the management in the procurement process which is usually for fulfilling the objective of self-interest ”(Schipper, 1989).Procurement management techniques can be divided into two namely "cosmetics" (without giving impact on cash flow) and "real" (affect cash flow).
Required:
The management of the company wants to increase revenue for the current period.
a) List three (3) “cosmetic” methods as well as three (3) “real” methods that can be used
b) Explain how this method can help in achieving company objectives by giving appropriate examples to support your answer

Answer rating: 100% (QA)

The term earnings management refers to managements active interference in the reporting process in order to deceive stakeholders about the companys economic and financial status or with the personal i... View the full answer