U.S. GAAP currently is classified by levels (A through D) and organized by standards, interpretations, and related guidance rather than by topic. At the completion of the FASB's codification project, classification by levels will no longer exist; instead, GAAP will consist of only two levels, authoritative and nonauthoritative literature. Going forward, pronouncements will amend the codification instead of adding new numbered standards. The codification represents a fundamental change for accounting researchers and educators who reference U.S. GAAP through the current maze of standards, interpretations, and other authoritative guidance. This paper explains the codification process; examines issues of interest to researchers, educators, and others in the profession; and discusses potential avenues for academic research.
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Research Article| December 01 2006
The FASB's Codification Project: A Critical Step toward Simplification
Ruth Ann McEwen;
Thomas J. Hoey;
Online ISSN: 1558-7975
Print ISSN: 0888-7993
American Accounting Association
Accounting Horizons (2006) 20 (4): 391–398.
Ruth Ann McEwen, Thomas J. Hoey, John A. Brozovsky; The FASB's Codification Project: A Critical Step toward Simplification. Accounting Horizons 1 December 2006; 20 (4): 391–398. https://doi.org/10.2308/acch.2006.20.4.391
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