Did the FASB Codification Reduce the Complexity of Applying U.S. GAAP?

Oliver Binz, Robert Hills, Matthew Kubic

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

We examine whether the Financial Accounting Standards Board (FASB) Codification made it easier for preparers and auditors to locate relevant accounting guidance. We find that areas of U.S. GAAP with more dispersed and voluminous guidance before the Codification experience a larger post-Codification reduction in restatements. We find a similar decline in SEC comment letter questions referencing areas of U.S. GAAP with more dispersed and voluminous pre-Codification guidance. Our results suggest that before the Codification, preparers and auditors had difficulty in locating the appropriate accounting guidance and that the Codification mitigated this difficulty.

Original languageEnglish (US)
Pages (from-to)1479-1530
Number of pages52
JournalJournal of Accounting Research
Volume61
Issue number5
DOIs
StateAccepted/In press - 2023

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics

Fingerprint

Dive into the research topics of 'Did the FASB Codification Reduce the Complexity of Applying U.S. GAAP?'. Together they form a unique fingerprint.

Cite this