Recognition, Disclosure, or Delay: Timing the Adoption of SFAS No. 106

This study investigates the timing and method of adoption of Statement of Financial Accounting Standards(SFAS) No. 106: Employers' Accounting for Post-Retirement Benefits Other Than Pensions (FASB [1990]). Our study is motivated by the Financial Accounting Standard Board's (FASB) policy of extending the adoption period of new accounting standards beyond one fiscal year. Specifically, during 1991 and 1992, firms could adopt SFAS No. 106, disclose the expected impact of adoption, or delay adoption/disclosure until fiscal 1993.