The study contains an overview of earnings management tools  of reporting entities and capital groups in Poland. Relations between the phenomenon of earnings management and financial reporting policy have been analysed. A research problem related to the significance and application of particular earnings management tools as perceived by practitioners (accountants, executive board members, specialists) has been discussed. Selected tools of earnings management, usually linked with operations, are perceived to be used more intensively. The conducted analysis shows that in the opinion of the surveyed the most effective instrument influencing the desired level of results presented in a financial statement is carrying out transactions under conditions which ensure the achievement of a reported goal. This applies also to capital groups, in which transactions effected between group units were indicated as the ones used to the greatest extent.

Full text: PDF


comprehensive income, earnings management, financial reporting policy, instruments(tools)of earnings management


Badertscher, B.A., 2011. Overvaluation and the Choice of Alternative Earnings Management Mechanism. The Accounting Review, 86(5), pp. 1491-1518.

Barth, M.E., Gómez-Biscarri, J., Kasznik, R, López-Espinosa, G., 2012. Fair Value Accounting, Earnings Management and the use of Available-for-Sale Instruments by Bank Managers. Working Paper no. 05/12, Universidad de Navarra. Available at: _UNAV_05_12.pdf, [Accessed 16 December 12.2012].

Barth, M. E., Landsman, W.R., Lang, M.H., 2008. International Accounting Standards and Accounting Quality. Journal of Accounting Research, 46(3), June, pp. 467-498.

Bergstresser, D., Philippon, T., 2006. CEO incentives and earnings management.Journal of Financial Economics, 80 (3), pp. 511-529 [cited by]Schneider, G. P., Sheikh, A., Simione, K., 2012. Income smoothing: management consequences andauditor responsibilities in the case of BEAZER HOMES.” Journal of the International Academy for Case Studies, 18 (3), pp. 4-6.

Burgstahler, D.C., Hail, L., Leuz, C., 2006. The Importance of Reporting Incentives: Earnings Management in European Private and Public Firms. The Accounting Review, 81(5), pp. 983-1016.

Cernusca, L., 2011. Accounting Policie In the Context of the European and International Regulations. Lucrari Stiintifice, seria I, 8(3), pp.25-26.

Commission Regulation (EC) No. 1126/2008 dated 3rd November 2008, adopting particular international accounting standards pursuant to the order (EC) No. 1606/2002 issued by the European Parliament and Council.

Cotter, J., Stokes, D., Watt, A., 1998. An analysis of factors influencing asset write-downs. Accounting and Finance, 38, pp. 157-179.

Dumitrana, M., Jianu, I., Jinnga, G., 2010. Comprehensive Income – Past, Present and Future. Scientific Annals of the “Alexandru Ioan Cuza” University of Iasi, Economic Sciences Section, Special Issue, pp. 27-28.

Elliott, J. A., Shaw, W. H., 1988. Write-Offs as Accounting Procedures to Manage Perceptions. Journal of Accounting Research, 26, pp. 117-134.

Elliot, J. A., Hanna, J. D., 1996. Repeated Accounting Write-Offs and the Information Content of Earnings. Journal of Accounting Research, 34, pp. 135-155.

Francis, J., Hanna, J. D., Vincent, L.,1996. Causes and Effects of Discretionary Asset Write-Offs. Journal of Accounting Research, 26, pp. 117-134.

Jermakowicz, E. K., Epstein, B. J., 2011. Accounting policy Options In IFRS. Accounting & Auditing, The CPA Journal, 81 (8), pp. 44-49.

Kaczmarek, M., 2008. Polityka bilansowa jako narzędzie rachunkowości. Szczecin: Wyd. Uniwersytet Szczeciński.

Karatzimas, S., Zounta, S., Kyriakidou, V., 2011. Impacts and changes in the accounting policies after the IAS adoption: a comparison between the manufacturing and the commercial sector on Greece. Accounting and Management Information Systems, 10 (3), pp. 302-317.

Hayn, C., Hughes, P.J., 2006. Leadning Indicators of Goodwill Impairment. Journal of Accounting, Auditing and Finance, Summer, 21(3), pp. 223-265.

Healy, P. M., Wahlen, J. M., 1999. A review of the Earnings Management Literature and its Implications for standards setting. Accounting Horizons, 13, pp. 365-383.

Horváth, R., Spirollari P., 2012. Do the board of directors’ characteristics influence firm’s performance? The U.S. evidence. Prague Economic Papers, 4, pp. 470-486.

Liu, X., Yu, Y.,2013. Impact in Earnings Management of Fair Value Measurement Based on Electric Power Industry. International Business Research, 6(8), pp. 49-54.

International Accounting Standards 2009, [online]. Available at:

International Financial Reporting Standards 2009, [online]. Available at:

McKee, Thomas E., 2005. Earnings Management: An Executive Perspective. Indiana: Thomson.

Moldovan, R.L., Achim, S.A., Bota-Avram C., 2010. Fighting the Enemy of Fair View Principle – Getting to know creative Accounting. Scientific Annals of the “Alexandru Ioan Cuza” University of Iasi, Economic Sciences Section, Special Issue, pp.52-55.

Piosik, A., 2013. In: Kształtowanie zysków podmiotów sprawozdawczych w Polsce. MSR/MSSF a Ustawa o Rachunkowości. Wydawnictwo C.K. Beck, p. 181 Kuzior A.,

Piosik, A., Strojek-Filus, M., Rówińska, M. Wydawnictwo C.H.Beck, p. 181.

Piosik, A., Rówińska, M.,2010. Determinanty dokonywania odpisów z tytułu utraty wartości aktywów trwałych na przykładzie spółek notowanych na GPW w Warszawie. Zeszyty Teoretyczne Rachunkowości, Tom 55 (111), pp. 139-166.

Popa, D.N., Belenesi, M., Mester, I.T., 2011. An investigative study regarding SMES specific accounting policies, Annals of the University of Oradea, Economic Science Series, 20(1), pp. 646-649.

Procházka, D., 2011. The Role of fair Value Measurement in the Recent Financial Crunch. Prague Economic Papers, 1, pp. 71-86.

Oxford Advanced Dictionary, 1987. Hazell Watson&Viney Limited.

Riedl, E. J. 2004. An Examination of Long-Lived asset Impairments. The Accounting Review, 79(3), pp. 823-852.

Ristea, M, 2000. Metode si politici contabile de intreprindere. Editor Tribuna Economica, Bucuresti, [cited by] Cernusca L.,2011. Accounting Policie In the Context of the European and International Regulations, Lucrari Stiintifice, seria I, 8 (3), pp.25.

Sarkar, J., Sarkar, S., Sen, K.,2008. Board of Directors and Opportunistic Earnings Management: Evidence from India.Journal of Accounting, Auditing & Finance, 23(4), pp. 517-551.

Schneider, G. P., Sheikh, A., Simione, K., 2012. Income smoothing: management consequences and audytor resposibilites in the case of BEAZER HOMES. Journal of the international Academy for case studies, 18 (3), pp. 4-6.

Spohr, J., 2005. Essays on Earnings Management. Publications of the Swedish School of Economics and Business Administration,153, pp. 12-14.

The act as of 29th September 1994, the Journal of Laws No. 121, item 591; consolidated text dated 2nd September 2009, the Journal of Laws No. 152, item 1223.

The corporate tax act, the Journal of Laws as of 2000 No. 54, item 654.

Walińska, E., 2005. Międzynarodowe Standardy Rachunkowości. Kraków: Oficyna Wydawnicza.