Note(s): This table shows the sample selection process. Starting with the intersection of Compustat, CRSP, I/B/E/S and EDGAR, we select firm-years that start after December 15, 2017, which is the mandatory adoption date for ASC 606. Using textual analysis, we remove firms who adopt the new standard using the full retrospective approach, which limits our ability to calculate the effect of the standard in the period of implementation. From the sample of firms who adopt using the modified retrospective approach, we use Amazon Mechanical Turk to hand-collect the effect of the new standard on net income and total revenues. See Appendix B for details on this disclosure and these procedures. We restrict the sample to a subset of firms who are materially affected by ASC 606, or where the ASC 606 effect on net income is greater than 1% of total revenues, or when the effect on revenues is 5% or greater compared to ASC 605 (the old standard) total revenues. We then hand-collect the texts of SAB 74 ASC 606 disclosures for the sample of 168 firms for quarters −6 to −1 with respect to the adoption quarter. Requiring all control variables and three or more analysts leaves us with our final sample of 131 firms