This study investigates whether Australian targets mange their earrings during takeover bids. A sample of 65 firm-years that were subject to takeover officers during the period 1999-2003 is selected. Each treatment firm-year is matched by industry and size with a control firm-year not subject to a takeover bid. Three Discretionary Accruals models are used: the DeAngelo (1986) model, the Jones (1991) model and the modified Jones (1995) model. The results are reasonably consistent among the three models. They indicate that “accept”, but not “reject” firms manage earnings to support directors’ recommendations.