Effects of the SEC's XBRL mandate on financial reporting comparability

Dhole, Sandip, Lobo, Gerald J., Mishra, Sagarika and Pal, Ananda M. 2015, Effects of the SEC's XBRL mandate on financial reporting comparability, International journal of accounting information systems, vol. 19, pp. 29-44.

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Title Effects of the SEC's XBRL mandate on financial reporting comparability
Author(s) Dhole, Sandip
Lobo, Gerald J.
Mishra, SagarikaORCID iD for Mishra, Sagarika orcid.org/0000-0003-0590-225X
Pal, Ananda M.
Journal name International journal of accounting information systems
Volume number 19
Start page 29
End page 44
Total pages 16
Publisher Elsevier
Place of publication Amsterdam, The Netherlands
Publication date 2015-12-01
ISSN 1467-0895
Keyword(s) XBRL
Financial statement comparability
Extension taxonomy
Summary © 2015 Elsevier Inc. In 2009, the US Securities and Exchange Commission (SEC) made it mandatory for firms to file interactive data using XBRL along with their 10-K and 10-Q reports on EDGAR. There was an initial three-year phase-in period, with the first (last) phase covering the largest (smallest) firms in the US capital markets. We examine the implications of the SEC's XBRL mandate for financial statement comparability. Our results indicate that financial statement comparability declined in the initial years after the mandate. We also find that firms that use more company-specific extension taxonomies (companies are allowed to use their own taxonomies when the standard taxonomy provided by the Financial Accounting Standards Board (FASB) is inadequate) have lower financial statement comparability in the post-mandate years. Finally, we document that the level of discretion involved in measuring particular financial statement line items is related to the post-mandate change in comparability - we find that selling, general and administrative expense (SG&A) comparability declined after the mandate, while depreciation comparability did not change.
Language eng
Field of Research 1501 Accounting, Auditing And Accountability
0806 Information Systems
150103 Financial Accounting
Socio Economic Objective 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
HERDC Research category C1 Refereed article in a scholarly journal
Persistent URL http://hdl.handle.net/10536/DRO/DU:30080532

Document type: Journal Article
Collection: Department of Finance
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