Earnings Management Practices From Perspective a Law and Ethical Views

DOI

10.2991/aebmr.k.210616.046How to use a DOI?

Keywords

Earnings management, Legal rules, Ethics

Abstract

The purpose of this study is to look at two different points of view of the practice of Earnings Management which is a management strategy to improve its financial statements, based on a legal point of view from the generally accepted rules of accounting and an ethical point of view. The two points of view differ because it is not certain that what is following the law will be following ethical principles. This research method uses a literature review related to the problems of companies that carry out earnings management, legal values, and moral ethics. The results of this study indicate that from a legal point of view, the practice of earning management which is often carried out in several companies is following generally accepted rules because this is a strategy used by management to manipulate company profits from its financial statements, while from the point of view of Moral Ethics, it is management’s actions. not by ethics or unethical because it is misleading and is detrimental to various parties such as investors, the public, the government, and other users of financial statements.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Sri Arita
AU  - Riyadi Aprayuda
AU  - Defriko Gusma Putra
AU  - Rita Syofyan
PY  - 2021
DA  - 2021/06/17
TI  - Earnings Management Practices From Perspective a Law and Ethical Views
BT  - Proceedings of the Sixth Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2020)
PB  - Atlantis Press
SP  - 307
EP  - 313
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210616.046
DO  - 10.2991/aebmr.k.210616.046
ID  - Arita2021
ER  -