Answer
The Emerging Issues Task Force often arrives at consensus conclusions on certain financial reporting issues. These consensus conclusions are then looked upon as GAAP (generally accepted accounting principles) by practitioners because the SEC (Securities and Exchange Commission) has indicated that it will view consensus solutions as preferred accounting and will require persuasive justification for departing from them. Thus, at least for public companies which are subject to SEC oversight, consensus solutions developed by the Emerging Issues Task Force are followed unless subsequently overturned by the FASB.
Work Step by Step
It should be noted that the FASB (Financial Accounting Standards Board) took greater direct ownership of GAAP established by the EITF by requiring that consensus positions be ratified by the FASB.
