ACCOUNTING MEASUREMENT AND FINANCIAL REPORTING

ABSTRACT. Accounting management typically refers to the firm's discretionary choices which affect the firm's reported performance by altering the accounting measurement process; in their model, Liang and Wen interpret investment deviations from the first-best as an example of real earnings management and accounting manipulation of y into w as accounting earnings management. Salvary notes that investments constitute the observable phenomena in financial accounting and recoverable cost, which is grounded in measurement and not prediction.