Income Statement Expense Disaggregation

• 成果类型: Article
• 署名作者: Blann, James J.; Moon Jr, James R.
• 署名单位: University System of Georgia; Georgia Institute of Technology
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826; 1558-7967
• DOI: 10.2308/TAR-2023-0545
• 发表日期: 2026-05
• 页码: 137-165
• 关键词: expense disaggregation; financial reporting standards; decision usefulness; DISCLOSURES EVIDENCE; VALUE-RELEVANCE; INFORMATION; determinants; Managers; QUALITY

摘要

The FASB recently issued ASU 2024-03, which requires disaggregation of significant expenses, like cost of goods sold (COGS) , selling, general , administrative (SG&A) expenses. Proponents argue disaggregation will improve decision usefulness, whereas opponents suggest the information will be costly and provide little value. We provide large-sample evidence on the pre-ASU state of expense disaggregation, analyze whether it appears to provide decision-useful information, and explore differences across disaggregation components. Our findings suggest that disaggregation is relatively common, increasing over time, and correlated with demand for disclosure, disclosure incentives, and firm economics. Further, our evidence is consistent with COGS, but not SG&A, disaggregation providing decision-useful information for investors and analysts, and these benefits accrue via improved processing of expense-related news. Overall, our evidence suggests that not all disaggregation is equal. We also identify novel, large-sample expense disaggregation measures for U.S. firms, which are likely useful for evaluating other implications of disaggregation.