Question

Briefly define and describe the EITF

Answer 1

• The Emerging Issues Task Force (EITF) is an organization formed by Financial Accounting Standards Board (FASB) to identify, discuss and resolve accounting issues with the aim of improving financial reporting.
• EITF provides assistance to FASB in improving the financial reporting and resolving the issues.
• Relevance and faithful representation are two qualities of accounting information which helps in useful decision making, and also resolve accounting issues.
• Timeliness and neutrality are two components of relevance quality of accounting information.
• Emerging Issues Task Force is a standard committee formed by Financial Accounting Standards Board to investigate and resolve accounting issues with identification and discussion.
• It holds meetings with the public to discuss various accounting issues.
• It consists of accountants from large accounting firms and a senior chief accountant at SEC.
• It establishes uniform practices on new accounting issues before new practices become widely accepted in different regions.
• EITF resolve accounting issues within the framework of FASB codification.