Course 8 – Earnings Management
In this single video course, Professor Pratt first defines earnings management and then introduces and illustrates the two basic forms: real earnings management and accruals earnings management. He 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 video concludes with a thorough discussion of why earnings management is practiced and common strategies used by companies. Throughout the video, real-world financial statements and footnotes are analyzed. Companies featured include General Electric, Merck, Harley Davidson, Tesla, AT&T, Volkswagen, Walt Disney, and others
Course 8 Learning Objective
- Define earnings management.
- Differentiate between real earnings management and accruals earnings management.
- Identify the four general areas where accruals earnings management is practiced and be able to recognize examples of each.
- Explain why earnings management is practiced.
- List and identify the popular strategies used by companies to practice earnings management.
Course Component
- PRATTedu Resources
- PRATTedu Program Structure
- Single Video + Knowledge Checks
- Assessment Quiz (must score 70%)
CPE Requirements
- The assessment Quiz must be completed satisfactorily no later than one year after enrollment, at which time your access to the website will expire.
- A 70% minimum score on the Assessment Quiz is required for satisfactory completion and to receive a certificate.
Course Navigation
Main Course Page Navigation (Current Page)
The main course page for each course consists of 6 sections: (1) Course description; (2) Learning objectives; (3) Course components; (4) CPE requirements; (5) Course navigation; and (6) the master course navigator, which allows you to quickly jump to the various lessons that make up the course. The course structure and resources, the course videos, and the final assessment quiz.
Master Course Navigation
Simply complete the lessons in order. At the bottom of each lesson, are two buttons: Previous Lesson or Next Lesson. We also include excerpts in the buttons so you can quickly identify the content in each direction. You can always go back to the beginning of the course (course intro page) by clicking the “back to Course 1 – Introduction to Financial Statements link. Note: At the bottom of each completed lesson (right above the previous/next buttons) it will state “Complete Lesson” make sure you click it before moving on.
MAKE SURE YOU GET YOUR CERTIFICATE! Please read below:
You must mark each page of our courses as complete for our system to register for completion of a course and generate a certificate. The Structure and Resources section is typically missed by many users, simply scroll to the bottom of each page and click the blue “Mark Complete” button and enjoy your course!
Course Information
Course Instructor
Basic Enrollment
Scoring at least 70% on the assessment quiz after completion of this course earns a Certificate of Completion worth 2 hours of continuing professional education (CPE) credits.