Journal of

Marketing Development and Competitiveness

Scholar Gateway

Abstracts prior to volume 5(1) have been archived!

Issue 5(1), October 2010 -- Paper Abstracts

Girard  (p. 9-22)

Cooper (p. 23-32)

Kunz-Osborne (p. 33-41)

Coulmas-Law (p.42-46)

Stasio (p. 47-56)

Albert-Valette-Florence (p.57-63)

Zhang-Rauch (p. 64-70)

Alam-Yasin (p. 71-78)

Mattare-Monahan-Shah (p. 79-94)

Nonis-Hudson-Hunt (p. 95-106)

JOURNAL OF ACCOUNTING AND FINANCE

Do Earnings Lie? – A Case Demonstrating Legally-Permissible

Manipulation of Corporate Net Income

Author(s): James Bannister, Susan Machuga

Citation: James Bannister, Susan Machuga, (2013) "Do Earnings Lie? – A Case Demonstrating Legally-Permissible Manipulation of Corporate Net Income," Journal of Accounting and Finance, Vol. 13, Iss. 5, pp. 107 - 115

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This case demonstrates the flexibility management has in determining Net Income under Generally

Accepted Accounting Principles (GAAP). Most courses dealing with Financial Accounting present the

student with technical material, and focus on applying GAAP as though management exercises no

subjective input in the process. The present case forces students to re-think this assumption and to learn

how much leeway management really has in applying GAAP rules. After completing this case, students

see that there is a substantial range of potential reported Net Income amounts, depending upon the

estimates and assumptions they select.