Abstract:

Research into the quality of accounting information has evolved in particular in recent years, precisely because of the increased number of financial scandals. Earnings management is one of the most widespread forms of financial reporting that managers use to meet their goals. The subject of earnings management is profit, which is one of the main items of the financial statements. It is an important indicator of the company's business activities, managerial decisions as well as the financial position of the company. The paper deals with the analysis of the various forms of earnings and the subsequent analysis of the profitability indicators of the engineering company operating in the Slovak Republic. We analyzed the years 2012-2017. Both profits and profitability indicators show an increasing tendency, and in the last few years they have achieved impressive results. Performed analyzes are only an elementary basis for earnings management.