Earnings quality

Accounting research
Research areas Accounting information systems Auditing Financial accounting Governance Management accounting Tax accounting
Methodologies Analytical Archival Experimental
Specific topics Convergence of accounting standards Earnings management Earnings quality Earnings surprise Positive accounting Post-earnings announcement drift Voluntary disclosure
Accounting journals The Accounting Review Contemporary Accounting Research Journal of Accounting and Economics Journal of Accounting Research Review of Accounting Studies
Related topics Academia Academic publishing Econometrics Economics Scientific method Social science
Part of a series on Accounting
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Part of a series on
Accounting
Historical cost Constant purchasing power Management Tax
Major types Audit Budget Cost Forensic Financial Fund Governmental Management Social Tax
Key concepts Accounting period Accrual Constant purchasing power Economic entity Fair value Going concern Historical cost Matching principle Materiality Revenue recognition Unit of account
Selected accounts Assets Cash Cost of goods sold Depreciation / Amortization (business) Equity Expenses Goodwill Liabilities Profit Revenue
Accounting standards Generally-accepted principles Generally-accepted auditing standards Convergence International Financial Reporting Standards International Standards on Auditing Management Accounting Principles
Financial statements Annual report Balance sheet Cash-flow Equity Income Management discussion Notes to the financial statements
Bookkeeping Bank reconciliation Debits and credits Double-entry system FIFO and LIFO Journal Ledger / General ledger Trial balance
Auditing Financial Internal Firms Report Sarbanes–Oxley Act
People and organizations Accountants Accounting organizations Luca Pacioli
Development History Research Positive accounting Sarbanes–Oxley Act
Misconduct Creative Earnings management Error account Hollywood Off-balance-sheet Two sets of books
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Earnings quality, also known as quality of earnings (QoE), in accounting, refers to the ability of reported earnings (net profit/income) to predict a company's future earnings.^[1] It is an assessment criterion for how "repeatable, controllable and bankable"^{[citation needed]} a firm's earnings are, amongst other factors, and has variously been defined as the degree to which earnings reflect underlying economic effects, are better estimates of cash flows, are conservative, or are predictable.^{[citation needed]}