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January 23, 2026China Accounting and Finance Review0 citationsOpen Access

Managerial Discretion in SAB 74 Disclosure Timing Under ASC 606

How managerial discretion in SAB 74 disclosure timing mitigates uncertainty under ASC 606

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Authors

JGJesse GlazeANAaron Nelson

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Overview

Examines how disclosure timing affects forecast accuracy in the context of accounting changes, indicating the importance of timely reporting.

Key Points

  • The aim is to analyze how managerial incentives influence the timeliness of mandatory disclosures under ASC 606.
  • Identified 131 firms affected by ASC 606.
  • Collected and analyzed SAB 74 disclosures related to these firms.
  • Measured the impact of disclosure timing on analysts' forecasting accuracy.
  • Managers delay disclosures when expecting negative net income effects from ASC 606.
  • Analysts' forecasts become less accurate post-ASC 606 adoption, especially for materially affected firms.
  • Timeliness of SAB 74 disclosures improves forecast accuracy and reduces dispersion among forecasts.

Cite This Study

Glaze et al. (2026) studied this question.

synapsesocial.com/papers/69730fc4c8125b09b0d1f7adhttps://doi.org/10.1108/cafr-07-2024-0098
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