Did the FASB Codification Reduce the Complexity of Applying U.S. GAAP?

We examine whether the Financial Accounting Standards Board (FASB) Codification reduced financial reporting complexity by making it easier for preparers to locate and apply relevant accounting guidance. We find that areas of U.S. GAAP with more dispersed and voluminous guidance before the Codification experience a larger post-Codification reduction in restatements. We find a similar decline in SEC comment letter questions referencing areas of U.S. GAAP with more difficult-to-locate pre-Codification guidance. Our results suggest that prior to the Codification, preparers had difficulty in locating and processing the appropriate accounting guidance and that the Codification mitigated this difficulty