Abstract:

Authors deal with the earnings management issue. The contribution is focused on the possibility of using selected the most known earnings management models within small and medium-sized enterprises. In recent years, earnings management can be described as a modern phenomenon. Domestic as well as foreign authors deal with this topic. The initial studies were created in the US. They were focused on the theoretical background of the issue, as well as the problem of the earnings management measurement. The most known models using for the earnings management measurement were created abroad. The applicability of these models in countries with different economic conditions (such as the Slovak Republic) is the subject of research in the present paper. The contribution is focused on the small and medium-sized enterprises sector.

Within the theoretical part, the presented paper consists of the theoretical background of the earnings management issue and the legislative basis for small and medium-sized enterprises under the condition of the Slovak Republic. The methodology part contains the methodology of the earnings management measurement using the most known models. Results and discussion is focused on the comparison of the applicability of these models.