Identifying the Financial Statement Effect of Managing Earnings Determine the financial statement impact (overstatement, understatement, or no impact) of each of the following adjustments made by management with the intent to manage earnings. Consider each item separately, and consider the effect only in the period of the adjustment. *Assume selling price exceeds costs. Identifying the Financial Statement Effect of Managing Earnings Determine the financial statement impact (overstatement, understatement, or no impact) of each of the following adjustments made by management with the intent to manage earnings. Consider each item separately, and consider the effect only in the period of the adjustment