Most prior research on accounting standards has considered
the accounting-quality effects on a standard-by-standard
basis. These studies focus on the value relevance of
information provided by the new standard or examine the
economic consequences of early adoption. Our study provides
an overall assessment of the collective accountingquality
effects of 19 general-purpose accounting standards
that were implemented over a long period of time using both
qualitative and empirical analyses of accounting attributes
before and after implementation of the standards. We also
provide empirical evidence on the merits of the US standard-
setting process based on the accounting numbers reported
under the existing standards. Thus, policy makers
can use our discussion and the results of our analysis in their
assessment of the future direction for standard setting. In
addition, investors benefit from an improved understanding
of the overall impact of accounting standards on the quality
of financial statement information.