This paper provides a rational expectations model in which a manager manipulates earnings and his earnings forecasts in a coordinated way. In the model, the manager takes into account that failing to meet expectations created by his earnings forecast will have adverse consequences in future reporting periods. The model captures the disciplinary role of amortization and how it improves the quality of public information. Because every discretionary accrual must be amortized (or depreciated) in subsequent periods, accrual accounting restricts a manager's ability to simultaneously bias both earnings and earnings forecasts in the same direction over multiple periods. Consequently, amortization disciplines the aggressiveness of earnings and earnings-forecast management and enhances the quality of information available to investors.