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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