This course first defines earnings management and then introduces and illustrates the two basic forms: real earnings management and accruals earnings management. The course illustrates each form, provides a number of examples, discusses whether they are appropriate, and then creates a framework for accruals earnings management that identifies and relates the four general areas (materiality, disclosure, classification and measurement) where it is practiced. The course concludes with a thorough discussion of why earnings management is practiced and common strategies used by companies. Throughout the course, real-world financial statements and footnotes are analyzed. Companies featured include General Electric, Merck, Harley Davidson, Tesla, AT&T, Volkswagen, Walt Disney and others.
Self-Study Course Instructions:
FOR DOCUMENT-BASED COURSES
Download the course document(s) (below) and follow prompts contained in the document.
FOR RECORDED COURSES WITH VIDEO
Download any course document(s) (below) which may include handouts, glossary, transcripts, etc. Follow any prompts contained in the documents to help you complete the course. Most documents are searchable.
Play the recording, noting the sectional guides indicating where topics on the agenda are covered and the prompts to pause video playback to respond to a review question (located below the video playback area). The timestamps for review questions are also noted below.
Upon completing the video and successfully answering all review questions, you will then take the final exam.
Jamie Pratt held the Alva L. Prickett Chair of Accounting at the Kelley School of Business at Indiana University in Bloomington, Indiana, for 10 years and in now holds the title of Emeritus faculty. He received his doctorate in business from Indiana University in 1977, and has held faculty positions at the University of Washington (Seattle), the University of Zurich (Switzerland), Northwestern University and INSEAD (Fontainebleau, France), returning to Indiana in 1991.
Jamie’s research interests are in financial reporting and analysis, where he has published over 30 articles in the top academic research journals (including The Accounting Review, Journal of Accounting Research, Contemporary Accounting Research, Accounting, Organizations and Society, and Issues in Accounting Education), and he has taught courses in financial reporting and analysis at every level (introductory, intermediate, advanced) in every program (undergraduate, MBA, PhD). He has received over 30 teaching awards and recognitions, and also taught executive education courses throughout the world. Research and/or teaching recognitions have also come from the following organizations: American Accounting Association, American Taxation Association, Big 4 accounting firms (KPMG and PriceWaterhouseCoopers), Indiana Society of CPAs, the Universities of Manchester (England), Kwansei Gakuin (Japan) and Kentucky, and Business Week magazine. His resume also includes two textbooks (one in its 11th edition), two computer-based interactive case platforms, a financial analysis case book, and several instructor guides that support these products.
He is now CEO of PRATTedu (www.prattedu.com), which produces and delivers online video-based courses, primarily in the area of financial reporting and analysis.
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