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Transition To The New Revenue Standard: A Study Of Firms’ Decisions To Adopt Asc 606 Early, Irene Y. Zhang
Transition To The New Revenue Standard: A Study Of Firms’ Decisions To Adopt Asc 606 Early, Irene Y. Zhang
Dissertations
The Financial Accounting Standards Board has issued a new revenue standard through a series of updates since May 2014 (collectively, ASC 606). The standard allowed firms to adopt it a year early before the required effective date. This study provides evidence of the adoption effects of ASC 606 on firms’ financials and examines the relationship between the likelihood of early adopting ASC 606 and firm-specific characteristics. The results show that early adopters are distributed across 12 industries and 40% of them are concentrated in the computer programming and software industry. Early adopters in the software industry reported the largest cumulative …