Accounting Earnings

Accounting Earnings

The amount of money a company has earned during a given period, usually a quarter or year, as reported based on proper accounting standards. Accounting earnings help to measure a company's profitability, but investors should consider not just earnings quantity, but also earnings quality, in evaluating a company's accounting earnings. Earnings quality considers whether earnings are repeatable, controllable and bankable.

When a publicly traded company announces its accounting earnings, investors' reaction to the news will usually cause the stock's price to move. After releasing the earnings report, the company's management will discuss the results with investors in an earnings call. Generally accepted accounting principles (GAAP) allow accounting earnings to be calculated in a specific manner, while some accounting practices can be selected specifically for their impact on creating accounting earnings that support management goals, which may not always coincide with shareholder goals.

Investment dictionary. . 2012.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • Accounting earnings — Earnings of a firm as reported on its income statement. The New York Times Financial Glossary …   Financial and business terms

  • accounting earnings — earnings of a firm as reported on its income statement. Bloomberg Financial Dictionary …   Financial and business terms

  • Earnings quality — Earnings quality, in accounting, refers to the overall reasonableness of reported earnings. It is an assessment criterion for how repeatable, controllable and bankable McClure, Ben. (n.d.) Earnings: Quality Means Everything . Retrieved June 29,… …   Wikipedia

  • Accounting scandals — Accounting scandals, or corporate accounting scandals, are political and business scandals which arise with the disclosure of misdeeds by trusted executives of large public corporations. Such misdeeds typically involve complex methods for… …   Wikipedia

  • Earnings before interest, taxes, depreciation and amortization — (EBITDA) is a non GAAP metric that can be used to evaluate a company s profitability.::EBITDA = Operating Revenue – Operating Expenses + Other RevenueIts name comes from the fact that Operating Expenses do not include interest, taxes, or… …   Wikipedia

  • earnings management — UK US noun [U] ACCOUNTING ► the use of methods of recording financial information about a company s income that give a false idea of the company s success, which may not be illegal but is considered dishonest: »Some types of earnings management… …   Financial and business terms

  • accounting — ac‧coun‧ting [əˈkaʊntɪŋ] noun [uncountable] 1. ACCOUNTING JOBS the usual word for the profession of accountancy in the US 2. ACCOUNTING the work of keeping a company s financial records, recording its income and expenses, and its business deals:… …   Financial and business terms

  • earnings-related — ˌearnings reˈlated adjective ACCOUNTING relating to the amount of money that you earn and changing in relation to this amount, used especially about a pension scheme: • a state earnings related pension scheme • earnings related contributions * *… …   Financial and business terms

  • earnings basis — ˌearnings ˈbasis noun [singular] FINANCE used to discuss a company s performance based on its profits, rather than other measures of performance: • While not cheap on an earnings basis, the stock s $2 a share in operating cash flow makes it a… …   Financial and business terms

  • earnings per share — (EPS) The net profit attributable to ordinary shareholders divided by weighted average number of ordinary shares in issue. A fully diluted EPS calculation means that the figure is adjusted to take account of shares that will be issued under… …   Law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”