The challenges of improving revenue-recognition standard for multiple-element firms:evidence from the software industry (SOP 97-2)
dc.contributor.advisor | Swanson, Edward P. | |
dc.creator | Srivastava, Anup | |
dc.date.accessioned | 2008-10-10T20:54:42Z | |
dc.date.available | 2008-10-10T20:54:42Z | |
dc.date.created | 2008-05 | |
dc.date.issued | 2008-10-10 | |
dc.identifier.uri | https://hdl.handle.net/1969.1/85892 | |
dc.description.abstract | I investigated whether implementing SOP 97-2, the revenue-recognition standard for the software industry, reduces earnings informativeness. This standard is particularly important for two reasons: First, its provisions coincide with provisions of SAB 101, the current general revenue-recognition standard. Second, the software industry provides a laboratory setting for examining multiple-element firms, whose revenue-recognition challenges keep mounting as more and more firms bundle multiple products and services. I found that implementing SOP 97-2 leads to additional revenue deferrals and a decline in earnings informativeness. However, the market prices these deferrals as revenues, as if these amounts had not been deferred. Moreover, the proforma earnings, which I calculated by undoing the revenue deferrals, more strongly correspond with market returns than do the reported earnings. My findings indicate that the accounting numbers calculated using the pre-SOP 97-2 revenue-recognition rules more strongly correspond with market returns than do those calculated using SOP 97-2. My findings should interest FASB in its project on developing a new revenue-recognition standard. | en |
dc.format.medium | electronic | en |
dc.language.iso | en_US | |
dc.publisher | Texas A&M University | |
dc.subject | Revenue Recognition | en |
dc.subject | Market Efficiency | en |
dc.subject | Standards Setting | en |
dc.subject | Accounting Rules | en |
dc.subject | FASB | en |
dc.subject | SEC | en |
dc.subject | AICPA | en |
dc.title | The challenges of improving revenue-recognition standard for multiple-element firms:evidence from the software industry (SOP 97-2) | en |
dc.type | Book | en |
dc.type | Thesis | en |
thesis.degree.department | Accounting | en |
thesis.degree.discipline | Accounting | en |
thesis.degree.grantor | Texas A&M University | en |
thesis.degree.name | Doctor of Philosophy | en |
thesis.degree.level | Doctoral | en |
dc.contributor.committeeMember | Boehmer, Ekkehart | |
dc.contributor.committeeMember | McAnally, M. L. | |
dc.contributor.committeeMember | Tse, Senyo | |
dc.type.genre | Electronic Dissertation | en |
dc.type.material | text | en |
dc.format.digitalOrigin | born digital | en |
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