Chapters 1 and 2 discuss the nature and purpose of financial reporting, economic concepts of income, and earnings management. The remainder of the course uses this information to analyze a companys creditworthiness and profitability. With this in mind, are accountants ethically obligated to report financial information accurately? Does reporting using the generally accepted accounting principles imply accuracy? What are some potential consequences for an external analyst if a company provides inaccurate or misleading financial statements? Watch the following video before posting:

Earnings Management (Links to an external site.) https://www.linkedin.com/learning/finance-and-accounting-tips/earnings-management?auth=true&accountId=2245842&u=2245842&success=true&authUUID=2%2Fh59QkbQp%2B%2FyyZuuUuLUA%3D%3D

Be sure to post an initial, substantive response. A substantive initial post answers the question presented completely and/or asks a thoughtful question pertaining to the topic. 

Chapters 1 & 2 in Financial Statement Analysis

Barth, M. (2018). The future of financial reporting: Insights from research. Abacus, 54(1), 66-78.

McCann, D. (2018). Study finds disturbing evidence of earnings management. CFO.com.

Bailey, W., & Sawers, K. (2018). Moving toward a principle-based approach to U.S. accounting standard setting: A demand for procedural justice and accounting reform. Advances in Accounting, 43, 1-13.

McCann, D. (2018). Study finds disturbing evidence of earnings management. CFO.com.

Subramanyam, K. R. (2014). Financial statement analysis (11th ed.). New York, NY: McGraw Hill.