Earnings Manipulation through Classification Shifting

The book discusses about a particular technique of earnings manipulation - classification shifting. Classification shifting is misclassification of items in the financial statements in order to inflate operating earnings or cash flows. Several companies have been sanctioned by regulators in engaging in such type of manipulation which is a violation of accounting rules. The first two chapters in the book examine this misclassification in the income statement while the final chapter does so in the cash flow statement.