Large U.S. corporations, especially banks, tend to hold larger portfolios of securities. On its 2014 balance sheet,

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Large U.S. corporations, especially banks, tend to hold larger portfolios of securities. On its 2014 balance sheet, for example, Bank of New York Mellon reported short-term equity investment securities of $108.2 billion. Some have commented that these investments give management greater ability to manage reported earnings from one year to the next.


REQUIRED:
Can current accounting rules on short-term equity investments be used to manage earnings?

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