Technical adjustments in a company's financial statements can artificially improve earnings by: 1. **Accounting rule selection**: A company can choose favorable accounting rules for calculating revenue and expenses. For example, using comparability adjustments or revenue recognition methods to increase revenue. 2. **Exclusion of unusual items**: A company can exclude unusual items (such as asset impairments or one-time expenses) from operating income to show a better earnings picture. 3. **Expense capitalization**: A company can capitalize certain expenses (such as research and development expenses) as assets, reducing expenses and increasing earnings. 4. **Depreciation and amortization adjustments**: A company can adjust the method or period of depreciation and amortization to reduce expenses and increase earnings. 5. **Accounts receivable and accounts payable adjustments**: A company can adjust the method of accrual of accounts receivable and accounts payable to increase revenue or reduce expenses. 6. **Tax adjustment**: A company can adjust the method of accrual of taxes to increase earnings. 7. **Inter-party transaction adjustments**: A company can adjust the price or terms of inter-party transactions to increase revenue or reduce expenses. 8. **Adjustments to Supplemental Disclosures**: Companies can adjust supplemental disclosure items (such as EBITDA or adjusted net income) to present a better picture of profitability. 9. **Adjustments to Revenue Recognition**: Companies can adjust the method or timing of revenue recognition to increase revenue. 10. **Adjustments to Asset Impairments**: Companies can adjust the method of provisioning asset impairments to reduce expenses and increase earnings. These technical adjustments can artificially enhance a company's profitability, but may not fully accurately reflect the company's actual financial condition. Investors and analysts need to be aware of these potential adjustments when evaluating a company's financial statements and perform appropriate analysis and adjustments to obtain a more accurate picture of its financial condition.