We have an ongoing question in Financial Statement Analysis that I would like to share.
Suppose a company “manages” earnings. Nothing illegal, but cookie jar reserves and other techniques just happen to deliver nice smooth earnings for a company. These smoothed-out earnings make the company look more solid than perhaps they really are and hence enhance the stock price. Some accounting judgments might be considered opportunistic, yes, but they also improve the market value of the company as a whole.
Good or bad?