Earning management including corporate accounting policies or intentional manipulation?

Abstract

This literature study examines and clarifies issues associated with the earnings management perspective. The research method applied to this study is qualitative, utilizing literature studies for obtaining the data. The findings of this study demonstrate that earnings management is not a deception. Deception is an unlawful activity that is in violation of legal statutes. Meanwhile, earnings management is a practice of adjusting profits that is considered legal as it adheres to accounting standards and company law. The outcomes of this study add to the existing body of research in the field of financial accounting literature, particularly in the area of accounting theory.