The practice of shifting income from good years to poor years in order to show a record of steady growth is
A)known as earnings management and may be considered unethical.
B)highly recommended,but not required by IFRS.
C)a basic requirement of accrual accounting.
D)a requirement of IFRS.

Question

Quizplus · Accepted Answer

Shifting income from good years to poor years in order to show a record of steady growth is known as earnings management. This practice may be considered unethical as it involves manipulating financial statements to present a better picture of the company's performance than what actually exists.

The Practice of Shifting Income from Good Years to Poor