Financial Accounting Blog

Thursday, April 22, 2004 GE's Earnings Management under attack in 2002.
"GE's reported profits continue to grow at an impressive pace. But some analysts and investors worry that the company's profits growth is, in fact, slowing. GE also has a long-standing reputation for �managing� its earnings, by taking money from one pocket and putting it into another. Depending on your sympathies, GE does this either to help smooth reported earnings (and therefore to disguise all that hidden riskinesss), or to demonstrate more clearly to investors the growth of the company's underlying businesses."
[published by: Benjamin Piening]