The Study of the Relationship Between the Accounting Comparability and Earnings Management

Comparative capability is one of the qualitative features of information in the theoretical foundations of accounting and financial reporting that enables users of financial statements to identify and understand the similarities and differences between the two sets of information and to make their own decisions. Managing earnings by manipulating financial statements misleads users of financial statements, which is possible by using two methods of manipulating accruals and actuals. The purpose of this study is to investigate the relationship between comparability of financial statements and earnings management. The purpose of this study is applied and methodological is correlational. In this study, the comparability of financial statements has been measured using the Di Franco et al. (2011) model, accrual profit management using the Kutari et al. (2005) model, and actual earnings management using the risk model (2006). To conduct the research, information on 146 companies was collected during 2011-2011. The statistical model used is a multivariate regression model and combined data were used to test the hypotheses. The results show that there is no significant relationship between the comparability of financial statements and accrual based earnings management and actual earnings management.
1- Introduction
Accounting can be defined by the process of identifying measurement measures and reporting financial information in order to enable informed decision-making and making informed decisions by financial users. The presentation of these reports to foreign users of financial information is provided in a specific framework, which should verify the accuracy of these information and reports with the help of standards. One of the items of financial statements that is considered as a measure of performance appraisal and profitability of the profit unit is "profit reporting". In the event that the actual profit is inconsistent with the reported profit in the financial statements, an event called earnings management occurred. Since the main objective of accounting is to provide useful information for users of financial statements for financial decisions. The information provided in the financial statements will be useful if it has qualitative features of financial information. One of these qualitative features is the comparability of financial statements. Comparative capability is one of the reporting features that increases the quantity and quality of information available to investors and allows them to predict future performance more accurately by evaluating the past performance of the company and based on it decide (Di Franco, Kotari and Verdi, 2011). Hence, the more specific the ability to compare accounting information is, the more investors will be able to accurately predict future real profits and thus increase their ability to assess financial statements by focusing on profit management.
 
2- Research Questions or hypothesis
The reported profit of companies is considered as one of the important criteria for decision-making and is one of the most important criteria for evaluating performance and determining the value of an enterprise, which is always used by a wide range of users. The calculation of profits of an enterprise is influenced by accounting methods so if managers, through exercising their authority in the field of accounting choices in financial reporting, have incentives to mislead users of financial statements, the probability of manipulation or management of profits One way is to manipulate accruals and manipulate the actual activities of the economic unit. Therefore, the financial statements should be as high as possible on the qualitative characteristics of the financial statements in accordance with the theoretical basis of accounting and financial reporting (Publication 113, Audit Organization). Based on theoretical principles of accounting in Iran, prepared by the Accounting Standards Committee, qualitative attributes refer to the characteristics that make the information provided in the financial statements for users in order to assess the financial position, financial performance and financial flexibility of the entity useful. One of the qualitative features of financial statements (comparative capability) is financial statements. We expect the reliability of the comparative financial statements to be improved, thus, the quality of the financial statements and the financial statements information are more reliable.
 
3- Hypothese
In this regard, two research hypotheses have been developed for conducting the research:
H1. The ability to compare accounting and accrual-based profit management is meaningful.
H2. There is a meaningful relationship between the ability to compare accounting and real profit management.
 
3- Methods
In this study, the relationship between accounting and profitability comparability of companies accepted in Tehran Stock Exchange has been investigated. The dependent variable of this research is accrual based profit management (Kotari model, Lyon and Weizley, 2005) and real profit management ( On Chaudhry, 2006) and the independent variable, the ability to compare accounting (De Franco, Kotari, and Verdi, 2011). Since the results of this research can be used in the decisions of managers, investors and capital market participants, the objective aspect is considered as an applied research. In addition, the method of inference regarding the research hypotheses is in the descriptive-correlation research group. The research community of all companies accepted in Tehran Stock Exchange was considered. Investment industries, financial intermediation and banks and credit institutions were omitted from the statistical society due to the specific nature of their activities as well as the lack of information on the variables of some companies. Finally, the data of 146 companies available for a five-year period (2011-2014) were extracted and collected from the audited financial statements of Tehran Stock Exchange companies and the new Rahnavard Software for testing hypotheses. Data analysis and hypothesis testing were performed using R and Excel software and F and Husman tests were used to test the type of data.
 
4- Results
The results of the hypothesis test in 146 selected companies in Tehran's Erofs Exchange showed that there is no significant relationship between the ability to compare the accounting by De Franco and the actual profit management based on accrual items.
 
5- Discussion and Conclusion
In this study, the relationship between accounting and earnings management based on accruals items was investigated. Two hypotheses were developed for the purpose of research and 146 companies accepted in Tehran Stock Exchange were analyzed. To measure the comparability of accounting with Di Franco et al. (2011) and for accruals-based earnings management, the Kotari, Lyon and Weisley models (2005) and the real profit management model of the Controller model (2006) have been used. The results of the first and second hypotheses showed that there is no significant relationship between the feature of comparability and the management of earnings and accrual based on the companies admitted to the Tehran Stock Exchange. Sohn, (2016), in a research entitled "The Effect of Comparative Accounting on Accrual Based and Acceptable Actuarial Management", examined whether and how managers' optimistic earnings management activities were able to measure the degree of comparability of their company accounting with other firms Companies are affected, paid. The results of the research showed that with the degree of comparability of company accounting with other companies, the management of earnings based on accruals decreases and real profit management increases. The result of this study showed that there was no significant relationship between the feature of comparative accounting ability using the DI Franco model and earnings management based on accrual and real items at the level of the companies accepted in the Tehran Stock Exchange. According to the results of Sohnan's research (2016) , Conflicts. If the time domain of the research was considered for a longer period, the results could have been more generalized. However, considering that the ability to compare the need for 6-month financial statements was necessary, and the 6-month financial statements data in the software of the new financial system and the Tehran Stock Exchange website since 2009, there was a period of research since the year 2009 to 1394. In the present study, the model of De Franco et al. (2011) has been used. If another model is used to measure the ability to compare accounting. The results of the research may differ from the current research.
If another model is used to measure the ability to compare accounting