Financial Accounting Theory
Financial Accounting Theory
Financial Accounting Theory
Your earnings figure is ever so slightly on the lower side. You know that
you bought some items on credit the day before balance sheet day, but you
haven’t received the invoice yet. If you defer the recognition of this
expense to next year, you will be able to achieve the earnings per share
growth target. Would you do it?
Scenario B
Your bosses have set you a target of earnings per share growth of 10% -
should you achieve this target, you will receive £1,000,000 bonus this
year.