Using 329 time-varying industry factors to capture heterogeneous revenue generation processes, we quantify the impact of ASC 606 on revenue recognition for US-listed firms. Relative to a dollar of revenue recognized in the current year, an average of 100 cents of revenue are recognized in the...

Complexity in applying financial accounting standards can have real operational effects if firms alter their actions in the face of increased reporting costs. We examine whether the introduction of new standards (ASU 2017-12) designed to reduce compliance burden and better align hedge accounting...