Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 1 - Financial Accounting and Accounting Standards - Review and Practice - Questions - Page 22: 18


Ideally, the Emerging issue Task Force (EITF) usually arrives at a consensus conclusion on certain financial reporting issues. Therefore, the purpose of the task force is to reach a consensus on how to account for new and unusual accounting transactions that are speculated to potentially create differing financial reporting practices. Another role of EITF is to identify controversial accounting problems as they arise. It also determines whether they can quickly resolve them and whether to involve FASB in solving the issues.

Work Step by Step

Notably, its important to note that EITF is more of a problem filter to FASB since FASB works on more long-term problems while EITF deals with short-term issues that emerge from time to time.
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