are the net benefits of a corporation
Earnings is also the amount on which corporate tax
is due. For an analysis of specific aspects of corporate operations several more specific terms are used as EBIT
(earnings before interest and taxes) and EBITDA
(earnings before interest, taxes, depreciation, and amortization).
Many alternative terms for earnings are in common use, such as income
. These terms in turn have a variety of definitions, depending on their context and the objectives of the authors. For instance, the IRS
uses the term profit to describe earnings, whereas for the corporation the profit it reports
is the amount left after taxes
are taken out.
Some statistical models (e.g. based on Benford's law
or Beneish M-score
) are used in order to detect possible earnings manipulations (fraud).
- ^ Robert G. Eccles, Robert H. Herz, E. Mary Keegan, David M. H. Phillips: The Value Reporting Revolution: Moving Beyond the Earnings Game; Price-Waterhouse-Coopers, 2001.
- ^ John Hand and Baruch Lev (editors): Intangible Assets, Values, Measures. and Risks; Oxford University Press, 2003.
Last edited on 24 February 2021, at 13:03
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