Instead of the current 2016 results, assume that TED-Europe's financial performance far exceeded

management's stretch goal. In this case, would it be ethical to utilize earnings management techniques to reduce

operating income (e.g., reschedule the routine maintenance on non-production machinery that is traditionally

performed in January to December of the current year)? Explain. What impact would this type of earnings

management have on future financial performance? Why might management be incentivized to engage in incomedecreasing

earnings management?