Cosmetics and Tricks: Representing the Meanings of Earning Management Practices

The purpose of the study is to expose the meanings of earning management practices based on the perspective of the users of financial statements. By utilizing a qualitative approach, the study collects data based on the experience and perception of informants. Through in-depth and unstructured interviews, data are collected from tax inspector, credit analyst, investor, public accountant, and accounting lecturer. The study exhibits that, earning management is a creativity of management in manipulating and engineering accounting numbers with an intention to present a beautiful and attractive profit to external users. It is a sort of fraud that functions as cosmetics and tricks to deceive others for the benefits of manager or management.