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Abstracts prior to volume 5(1) have been archived!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