The authors have proposed a uniform, independent definition of quality of earnings
that allows for the development of an Earnings Quality Assessment (EQA) model.
The authors assert that there is a need for a measure in accounting that can be used to accurately assess the quality of earnings
reported by public companies on financial statements.
Larger discretionary accruals indicate a tendency to manage earnings, thus suggesting a lower quality of earnings
In this paper, we argue that quality of earnings
can serve as a productive framing device and a unifying theme in curriculum design and learning in Intermediate Financial Accounting, and that such a construct has several desirable pedagogical features.
This is why we consider this subject so important that we are featuring a special report in this CPA Letter on Quality of Earnings
, to communicate to all our members on their role in this process, whether they are part of the preparer, auditor, regulatory, government or academic communities.
Greene King said retail sales had moved into positive territory and the aim now was to drive the enlarged estate forward and improve the quality of earnings
Travellers is confident in its ability to deliver sustainable growth, and shall continue to focus on delivering quality of earnings
to its shareholders through the top line growth in revenues and expense management leading to continued expansion in its EBITDA (earnings before interest taxes, depreciation and amortization) and net income," Sian added.
Analysis of key red flags at individual banks shows that the most worrying are asset quality, quality of earnings
and corporate governance.
The review will focus on the company's operating and strategic direction as well as the quality of earnings
, ongoing industry pressures (notably regarding Commercial payors) and liquidity.
In order to sharpen Shuaa's quality of earnings
going forward, we have taken decisive steps to improve the balance sheet, significantly increase liquidity and eliminate further downside risks emanating from non-fee-generating businesses,' said Shuaa's chief executive, Sameer al Ansari.