What question did this study set out to answer?

To assess the impact of FAS 87 directives on financial results reported by adopting firms and compare early adopters versus those adopting later.

Transition to New Accounting Rules: The Case of FAS 87.

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Assesses FAS 87's impact on financial results in firms adopting new accounting rules, suggesting complexities for future changes.

To assess the impact of FAS 87 directives on financial results reported by adopting firms and compare early adopters versus those adopting later.
Identified 42 firms that adopted FAS 87 for their 1985 financial statements.
Compared pension expenses of early adopters in 1985 and 1986 to those in the previous years, particularly 1984.
Analyzed financial report data for patterns between early and late adopters of FAS 87.
Pension expense under FAS 87 was lower than the preceding year for 39 of 42 firms in 1985.
Twenty firms reported no pension expense in 1985 after adopting FAS 87.
Similar trends were observed for 1986 early adopters, with reduced pension expenses compared to 1985 for most firms.

Curtis Norton (1989) studied this question.

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