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Is income smoothing ethical?
Author(s) -
Chong Gin
Publication year - 2006
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20261
Subject(s) - smoothing , earnings , cash flow , affect (linguistics) , economics , business , computer science , public economics , accounting , psychology , computer vision , communication
Income smoothing is an active manipulation of earnings toward a predetermined target. Some smoothing devices can affect cash flow. The author discusses current income‐smoothing strategies and tackles the issue of whether they are ethical. © 2006 Wiley Periodicals, Inc.