Earnings Management Assignment - Singapore and Asian Nations

Added on - 28 May 2020

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Running head: EARNINGS MANAGEMENT IN SINGAPORE AND ASIAN NATIONSAn Investigation into Earnings Management in Singapore and Other Asian CountriesName of the University:Name of the Student:Authors Note:
1EARNINGS MANAGEMENT IN SINGAPORE AND ASIAN NATIONSTable of Contents1. Introduction......................................................................................................................22. Perspectives on Earnings Management...........................................................................22.1. Perspectives on Good and Bad Types of Earnings Management.............................22.2. Impacts of Earnings Management on Accounting Information Quality..................33. Earnings Management in Singapore and Other Asian Countries....................................33.1. Techniques Used by Asian Companies in Manipulating Earnings..........................33.2. Earnings Management in Asian Countries...............................................................43.3. Investors Reaction to Earnings Management...........................................................44. Ethical Issues Related to Earnings Management.............................................................54.1. Types of Earnings Management and Ethical Issues.................................................54.2. Results of Earnings Management.............................................................................54.3. Is it Ethical for Earnings Management.....................................................................55. Conclusion.......................................................................................................................6References............................................................................................................................7
2EARNINGS MANAGEMENT IN SINGAPORE AND ASIAN NATIONS1. IntroductionEarnings management can be understood as the implementation of suitable accountingtechniques for developing financial reports which indicates a highly positive picture of theorganization’s business activities along with financial situation. Several accounting principlesand rules need the company’s management to make certain judgments (Ali & Zhang, 2015).Earnings management includes alteration of the financial reports in order to mislead stakeholdersregarding a company’s underlying performance. The objective of this report is to offer certainperspectives on earnings management within Singapore and other Asian nations. Moreover, thepaper will also explain the ethical concerns associated with the earnings management practicedwithin the Singapore.2. Perspectives on Earnings Management2.1. Perspectives on Good and Bad Types of Earnings ManagementEarnings management is deemed as management’s action in bringing reported earningswithin the desired level (Bartov et al., 2017). Earnings manipulation has three mutually exclusivetypes such as earnings fraud, management and creative accounting. At the time earningsmanipulation is carried out through practicing certain discretion recorded by accountingstandards and business laws along with structuring activities in a manner which anticipated thatorganizational value is not impacted negatively. This can be deemed as earnings management bythe Singaporean companies or it can be deemed as earnings fraud.In contrast to that several academics of Singapore and Asian nations has a hostile attitudetowards earnings management (Capkun, Collins & Jeanjean, 2016). An elaboration for theearnings management can be considered as earnings management is referred as earnings fraud.Many companies in Singapore accused earnings management to be a fraud or a process thatresults in representational financial statements unfaithfulness. Moreover, they few Singaporeanpractitioners also consider earnings management to have deviousness or unethical actions.Few Asian companies believe that earnings management does not always involvefalsifying figures as this is more regarding moving the money around (Chen, Cheng & Wang,
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