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Financial Terms | |
Abusive Earnings Management |
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Definition of Abusive Earnings ManagementAbusive Earnings ManagementA characterization used by the Securities and Exchange Abusive Earnings ManagementThe use of various forms of gimmickry to distort a company's true financial performance in order to achieve a desired result.
Related Terms:Accounting earningsearnings of a firm as reported on its income statement. activity-based management (ABM)a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received Adjusted EarningsNet income adjusted to exclude selected nonrecurring and noncash items of reserve, gain, expense, and loss. Asset/liability managementAlso called surplus management, the task of managing funds of a financial basic earnings per share (EPS)This important ratio equals the net Basic Earnings Power RatioPercentage of earnings relative to total assets; indication of how ![]() Bottom-up equity management styleA management style that de-emphasizes the significance of economic Cash management billVery short maturity bills that the Treasury occasionally sells because its cash Certified Management Accountant (CMA)a professional designation in the area of management accounting that Core EarningsA measure of earnings that includes only the results of the primary operating Corporate financial managementThe application of financial principals within a corporation to create and cost management system (CMS)a set of formal methods Cost Plus Estimated Earnings in Excess of BillingsRevenue recognized to date under the percentage-of-completion method in excess of amounts billed. Also known as unbilled accounts Demand Management PolicyFiscal or monetary policy designed to influence aggregate demand for goods and services. diluted earnings per share (EPS)This measure of earnings per share ![]() EarningsNet income for the company during the period. EarningsIn general, refers to a company's total sales less cost of sales and operating expenses, including interest and income tax. earnings before interest and income tax (EBIT)A measure of profit that Earnings before interest and taxes (EBIT)A financial measure defined as revenues less cost of goods sold Earnings before interest and taxes (EBIT)The operating profit before deducting interest and tax. Earnings before interest, taxes, depreciation and amortization (EBITDA)The operating profit before deducting interest, tax, depreciation and amortization. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working Earnings ManagementThe active manipulation of earnings toward a predetermined target. Earnings per ShareA measure of the earnings generated by a company on a per Earnings per share (EPS)EPS, as it is called, is a company's profit divided by its number of outstanding earnings per share (EPS)See basic earnings per share and diluted earnings per share. Earnings per share of common stockHow much profit a company made on each share of common stock this year. Earnings retention ratioPlowback rate. Earnings surprisesPositive or negative differences from the consensus forecast of earnings by institutions Earnings yieldThe ratio of earnings per share after allowing for tax and interest payments on fixed interest EBBS - Earnings before the bad stuffAn acronym attributed to a member of the Securities and EBDDT - Earnings before depreciation and deferred taxesThis measure is used principally by Economic earningsThe real flow of cash that a firm could pay out forever in the absence of any change in Fully diluted earnings per sharesearnings per share expressed as if all outstanding convertible securities Institute of Management Accountants (IMA)an organization composed of individuals interested in the field of management accounting; it coordinates the Certified management Low price-earnings ratio effectThe tendency of portfolios of stocks with a low price-earnings ratio to Managementmanagement refers to the individuals in an entity that have the authority and the responsibility to manage the entity. The positions of these individuals, and their titles, vary from one entity to another and, to some extent, from one country to another depending on the local laws and customs. Thus, when the context requires it, the term includes the board of directors or committees of the board which are designated to oversee certain matters (e.g., audit committee). Management accountingThe production of financial and non-financial information used in planning for the future; making decisions about products, services, prices and what costs to incur; and ensuring that plans are implemented and achieved. management accountinga discipline that includes almost Management Accounting Guidelines (MAGs)pronouncements of the Society of management Accountants of Management buyout (MBO)Leveraged buyout whereby the acquiring group is led by the firm's management. management buyout (MBO)Acquisition of the firm by its own management in a leveraged buyout. Management/closely held sharesPercentage of shares held by persons closely related to a company, as management controlThis is difficult to define in a few words—indeed, an management control system (MCS)an information system that helps managers gather information about actual organizational occurrences, make comparisons against plans, management expense ratio (MER)The total expenses expressed as an annualized percentage of daily average net assets. MER does not include brokerage fees and commissions, which are also payable by the Fund. Management feeAn investment advisory fee charged by the financial advisor to a fund based on the fund's management feeThe fee paid to the fund’s manager for supervising the administration of the fund. management information system (MIS)a structure of interrelated elements that collects, organizes, and communicates management stylethe preference of a manager in how he/she interacts with other stakeholders in the organization; Money managementRelated: Investment management. net income (also called the bottom line, earnings, net earnings, and netoperating earnings) open-book managementa philosophy about increasing a firm’s performance by involving all workers and by ensuring Operating EarningsA term frequently used to describe earnings after the removal of the Operational Earnings Managementmanagement actions taken in the effort to create stable Passive investment managementBuying a well-diversified portfolio to represent a broad-based market performance management systema system reflecting the entire package of decisions regarding performance measurement and evaluation Portfolio managementRelated: Investment management Premanaged Earningsearnings before the effects of any earnings-management activities. price-earnings (P/E) multiple (ratio)Ratio of stock price to earnings per share. Price / Earnings (P/E) RatioThe ratio of price to earnings. Faster growing or less-risky firms typically have higher P/E ratios than either slower-growing or more risky firms. Price/earnings ratio (PE ratio)Shows the "multiple" of earnings at which a stock sells. Determined by dividing current price/earnings ratio (price to earnings ratio, P/E ratio, PE ratio)This key ratio equals the current market price Price to Earnings Ratio (P/E, PE Ratio)A measure of how much investors are willing to pay for each dollar Pro-Forma EarningsReported net income with selected nonrecurring items of revenue or gain Real Actions (Earnings) ManagementInvolves operational steps and not simply acceleration Retained earningsAccounting earnings that are retained by the firm for reinvestment in its operations; RETAINED EARNINGSProfits a company plowed back into the business over the years. Last January’s retained earnings, plus the net income or profit that a company made this year (which is calculated on the income statement), minus dividends paid out, equals the retained earnings balance on the balance sheet date. Retained earningsThe residual earnings of the company. Retained earningsA company’s accumulated earnings since its inception, less any distributions to shareholders. retained earningsearnings not paid out as dividends. Retained EarningsNet profits kept to accumulate in a business after dividends are paid. Risk managementThe process of identifying and evaluating risks and selecting and managing techniques to Roth IRA. An IRA account whose earnings are not taxable at all under certaincircumstances. Society of Management Accountants of Canadathe professional body representing an influential and diverse Statement of retained earningsAn adjunct to the balance sheet, providing more detailed information about the beginning balance, changes, and ending balance in Statement on Management Accounting (SMA)a pronouncement developed and issued by the management Statement Retained EarningsOne of the basic financial statements; it takes the beginning balance of retained earnings and adds net income, then subtracts dividends. The Statement of Retained earnings is prepared for a specified period of time. Strategic management accountingThe provision and analysis of management accounting data about a business and its competitors, which is of use in the development and monitoring of strategy (Simmonds). strategic resource managementorganizational planning for the deployment of resources to create value for customers and shareholders; key varibles in the process include the management of information and the management of change in response to threats and opportunities supply-chain managementthe cooperative strategic planning, Surplus managementRelated: asset management Sustainable EarningsReported earnings that have had the after-tax effects of all material synchronous managementthe use of all techniques that help an organization achieve its goals Top-down equity management styleA management style that begins with an assessment of the overall total quality management (TQM)a structural system for creating organization-wide participation in planning and implementing a continuous improvement process that exceeds Value-based managementA variety of approaches that emphasize increasing shareholder value as the primary goal of every business. Working capital managementThe management of current assets and current liabilities to maximize shortterm liquidity. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |