This paper introduces a discretionary accrual model based on the accounting process developed by Dechow, Kothari and Watts (1998). Our model tries to prevent a big proportion of nondiscretionary accruals to be judged as discretionary. Using data from the Japanese stock market, we find that our model fits accruals much better than versions based on Jones (1991). Evidence in this paper shows that our model is well specified in tests of earnings management presented in Dechow, Sloan and Sweeney (1995) and that its use may modify the findings of previous studies that utilize variations of the Jones model.