Earnings management is usually considered to be

when the company is purposefully providing mis-stated or inaccurate financial information.

1 answer

Earnings management is usually considered to be unethical when the company is purposefully providing mis-stated or inaccurate financial information. It often involves manipulating financial statements to present a more favorable picture of a company's financial position or performance than what is truthful. This practice can mislead investors and other stakeholders, potentially leading to regulatory scrutiny and loss of trust.