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The earnings depends on what buisness you are working for and what you are modeling.
If by earnings management models you are referring to earnings management research that has evolved with positive accounting theory, then it is important to note many models exists. Positive accounting theory (PAT) centers on the economic consequences of accounting choices. The broad stroke of the theory states that managers may be influenced to manipulate earnings away from "true earnings". In the effort to further expand PAT, researchers have approached the detection of earnings management in 2 general ways. The first way is to examine the income values of filing firms to determine whether they are zero or slightly less than zero. Theoretically, the expectation is that income should have a smooth distribution, however, Burgstahler and Dichev noted an "earnings kink" around zero. Another way to examine earnings management is by examining the 'level' of abnormal accruals believed to present in the income values--an example of some of these models include the Jones and modified Jones model.
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