This case simultaneously examines pension accounting and earnings management. It is designed around a real-world company although the company name in the case is fictional. Several key concepts are demonstrated in this case: earnings management incentives, earnings management techniques, pension...

In seeking to replace accounting conventions by concepts in the pursuit of principles-based standards, the FASB/IASB joint project on the conceptual framework has grounded its approach on a well-known definition of income by Hicks. We welcome the use of theories by accounting standard setters...