本篇作业代写-合并和收购案例讲了在合并和收购的案例中，公司可能会使用一种叫做利益共享的技术。这个问题最早出现在思科系统公司(Cisco Systems)的案例中。投资分析师必须了解收购是如何成为会计经理的，这样才能在确认资本账户成本的同时忽略其他成本。思科收购了12家公司。按照规定，它必须报告与收购所有12家公司相关的成本。然而，思科未能报告其中的5起。思科解释说，这五家公司的收购成本并不高。收购中使用的另一种技术称为购买会计技术。在购买会计技术中，收购公司的价格差异将被用于盈余管理。本篇作业代写文章由加拿大第一论文 Assignment First辅导网整理，供大家参考阅读。
In the case of mergers and acquisitions, the company might use a technique called pooling on interests. The issue was first reported in the case of Cisco Systems. Investment analysts have to be aware of how acquisitions are accounting managers so as to recognize only some costs in capital accounts while leaving off others. Cisco had acquired 12 companies. As per regulation, it had to report the costs related to acquisition of all 12 companies. However, Cisco was not able to report five of them. Cisco offered the explanation that the costs of acquisition for those five companies were immaterial. Another technique used in the case of acquisitions is called the purchase accounting technique. In the purchase accounting technique, the differences in price of company acquired will be used for earnings management. The fair market value and the actual price of acquisition need not be the same. The recognized fair market value can be amortized over future quarters. Revenue recognition style manipulation occurs when the firm is pushed to initiate some form of aggressive action for boosting their earnings. Here even securities classified for other purposes might be sold to boost sales. Finally, the SEC also advocates for analysts to look at the materiality threshold. Errors and misstatements might happen in accounting. It is the responsibility of the company to ensure that such errors do not cross the materiality threshold. When it crosses the materiality threshold, it can be held that the company is operating in abusive earnings manipulation.
Earning manipulation techniques might differ but their operational common aim is to present a consistent growth in earnings. Evaluation analysts need to understand that the underlying economic health of the company might not be truly reflected in the earning sheet (Louis, 2004). An understanding of the different techniques used in earning manipulation is hence necessary for proper evaluation. The aim of this research is to understand the impact of earnings manipulation on the performance of valuation models.
A large sample and a small sample analysis are carried out based on accounting based valuation models for US stocks subject to specific constraints.