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News and Updates

October 18, 2018

Quality of earnings, earning management or earnings magic?

Reissued October 17, 2018 to append the enumeration of limitations By Joseph L. Petrelli, ACAS, ASA, FCA, MAAA (MBA), President, Demotech, Inc. InvestingAnswers defines “quality of earnings” as the amount of profit from core operations rather than that attributable to accounting methods, extraordinary situations or earnings management. Investopedia defines “earnings management” as the use of…

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