Temptations of Managers Providing Guidance to Investors
What temptations might managers face if they have provided earnings guidance to investors and later find it difficult to meet the expectations that they helped create? Explain.
Solution Preview
Issuing projecting earning statements began in the 1980s but required cautionary language to be ncluded. One problem created by this was that earnings guidance was used to lower the expectations of stock analysts so that when the real numbers came out the stock would then jump when it ...
Solution Summary
This solution details the the temptations that managers might face in relation to investors and also explains how expectations might not be met in the future. All references used are included.
... will be improved, removing the temptation to abuse ... the statement will removed the temptations to paint ... position to prevent company managers from misclassifying ...
... Resist the temptation to sugarcoat the details ... all American Heart Association management and business ... Resource Policy Manual, provides guidance for decisions ...
... if that opportunity is not there, temptation is removed. ...Management Antifraud Programs and Controls. ... AICPA) commissioned a study to provide guidance to help ...
... Although the temptation is to put as much as you can on ... goes flat, and then find ways to provide them with ... Business Advice o Employment & HR » Management. ...
... up to cost to avoid the temptation to delay ... Therefore, the degree of earnings management (the deviation ... in the securitization markets should provide a history ...
... the MNC must stay abreast of local market conditions and sidestep the temptation to assume that ... One scenario involved a manager who was providing some form ...
... Resist this temptation if you can. ...Provides counseling and ... In this step, managers measure performance and determine if it is in line with the set standards ...
... often is enough to deter temptations because the ... plan, every manager and assistant manager will receive a ... 17.19 of this section provide reporting guidance...
... pressures and business pressures translate into a greater temptation. ... (you provide this) Audit ... the financial statement line items by management assertion to ...
