| dc.description.abstract | Anggoro, Renaldi (2007). Detecting Earnings Management Through Deferred Tax Expense. International Program of Accounting Department. Faculty of Economics. Universitas Islam Indonesia. Yogyakarta.
This research examines the usefulness of deferred tax expense as compared to accruals methods to detect earnings management in the three settings where earnings management are likely to occurs. The setting are; earnings management in concern to avoid reporting an earnings decline, to avoid reporting a loss and to meet or beat financial analysis forecast
The motivation detecting earning management through deferred tax expense, there is typically more discretion under generally accepted accounting principle (GAAP) than under tax rules. The manager will conduct discretion to manage income look bigger in ways that don not affect current taxable income. It's important because Earnings plays important role in decision making process since it become the first face that will be viewed by investors to appraise the firm's economic condition. On the previous reserch conduted by Philip, Pincus, Rego (2002) found that deffered tax expense is rather useful in detecting earnings management and classifying earnings management as discretion and non discretion. To gain further understanding of the incremental usefulness in detecting earnings management through deferred tax expense, this research combining deffered tax expense with accruals method also using 4 interval in order to get greater data.
The research resulted that deferred Tax Expense is generally not incrementally useful as detection of earnings management in Indonesian environment. The purpose of this study is to provide further evidence for Indonesian case. | en_US |
