Cookie Jar Accounting
An accounting practice where a company uses generous reserves from good years against losses that might be incurred in bad years. Investopedia Says:
This gives the sense of "income smoothing", because earnings are understated in good years and overstated in bad years. You may have heard of companies taking special charges or write downs, well that's just another flavor of cookie jar accounting. Related Terms:
Accounting
Cook the Books
Earnings
GAAP
Net Income
Restatement
The Beneish Model
Voodoo Accounting |