Özet:

Financial statements are mirrors showing success of business operations. Earnings at those statements are important for their users. Market value of a firm is directly affected by earnings. Managers use flexbility of principle of preparing financial statements to show them better than they should be. Earning management is to behave discretionary in timing of occurence of operation and classifying of the item. In addition, change in accounting methods can alter reported income statement trends. High quality of earnings of a firm is more important than level of them. Earning quality can mean conservative accounting methods and earnings that are free from manuplation. This paper provides a general perspective on earnings management. Earning management is defined and the methods using on earning mangement are explained in the paper.

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