Structure Needed for Implementing Mandated Accounting Changes

Abstract

This paper studies the FASB's first eighty-five standards to determine if implementations are ad hoc, or if there is a structure underlying the FASB's implementation practices. The study finds, on balance, that there is a structure in the Board's use of alternative approaches but not a uniform approach and that there are inconsistencies. The authors recommend that the Board formulate principles of implementation to avoid inconsistencies and to make users aware of the potential effects of contemplated changes.