intermediateaccountingearningsmanagementmodule∶timevalueofmoneyreview(编辑修改稿)

intermediateaccountingearningsmanagementmodule∶timevalueofmoneyreview(编辑修改稿)内容摘要：

lding a cookie jar reserve. • The SEC has issued SABs 101 and 102, identifying when it is appropriate to defer revenue. 621 Materiality • A change in one penny per share can cause a pany to lose billions of dollars in market value. • If a questionable practice helps a firm meet analysts’ expectations, the firm should be required to change the data or to convince the auditor that it plies with GAAP. • The SEC released SAB 99 that outlines a more prehensive definition of materiality. 622 Revenue Recognition • Firms would like to report revenue when contracts are signed or partially plete rather than waiting until the promised product or service has been fully delivered. • The SEC has released SAB 101, which reduced the flexibility panies have in the timing of revenue recognition. 623 Pro Forma Earnings • A pro forma earnings number is the regular GAAP earnings number with some revenues, expenses, gains, or losses excluded. • The exclusions are made because, panies claim, the GAAP results do not fairly reflect the pany’s performance. (continues) 624 • The concern with pro forma earnings is that panies can abuse the practice and report pro forma earnings merely in an effort to make their results seem better than they actually were. Pro Forma Earnings 625 626 Critically discuss whether a pany should manage its earnings. OBJECTIVE 3 627 Financial Reporting as a Part of Public Relations QUESTION. Does a manager have an ethical and fiduciary responsibility to carefully manage the resources of a publicly traded pany in order to maximize the value to the stockholder? ANSWER. Yes. In fact, this is the very definition of the responsibility of a corporate manager. 628 QUESTION. Does。