Research suggests that financial statement analysts should be alert to the potential use of impairment write-offs to manage earnings.

Question

Quizplus · Accepted Answer

Impairment write-offs are often seen as a way to manipulate earnings by reducing the value of an asset in order to offset gains or overstate losses. Financial statement analysts need to pay attention to impairment write-offs to ensure that they are not being used inappropriately to manage earnings.

Research Suggests That Financial Statement Analysts Should Be Alert to the Potential