Earnings Management: Foundation Techniques (Course Id 2406)

• Who is this course for?
  This course is intended for anyone needing Continuing Professional Education (CPE), particularly CPAs and accounting professionals.

• What is this course about or what problem does this course solve?
  The course provides a foundational understanding of earnings management techniques and addresses their ethical implications.

• How can the knowledge from this course be used?
  Learners can use this knowledge to identify, evaluate, and ethically navigate various earnings management strategies such as revenue recognition timing, expense and provision manipulation, and income smoothing.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding these techniques is critical for maintaining ethical standards and accurate financial reporting, which are essential responsibilities in the accounting profession.

• When is this course relevant or timely?
  With its release in 2024 and ongoing relevance to current financial reporting practices, this course is timely for professionals looking to stay updated on ethical considerations in earnings management.

• How is a course like this consumed or used?
  This course is delivered through a NASBA QAS self-study format and includes reading materials, review questions, and a final exam to be completed within a year of purchase.

This course provides an overview of earnings management techniques and their ethical implications. This course covers basics like revenue recognition timing, expense manipulation, provision adjustments, income smoothing, and cost-cutting. Throughout this course, the ethical considerations inherent in these techniques are addressed through a series of example situations. 

NASBA QAS - Text - NASBA Registry - 2406

Course Learning Objectives

• Identify methods of revenue recognition timing used in earnings management
• Recognize examples of expense manipulation techniques
• Recognize the impact of asset valuation adjustments on reported financial performance
• Differentiate between income smoothing and cost-cutting strategies

Chapter 1 - Earnings Management: Foundation Techniques

Course Learning Objectives

Course Overview

Introduction

Revenue Recognition Timing

Review Questions

Expense Manipulation

Provision Manipulation

Reserve Manipulation (Cookie Jar Reserves)

Asset Valuation Adjustments

Income Smoothing

Cost-Cutting Timing

Conclusion

Review Questions

Glossary of Key Terms