Emerging Issues Task Force (EITF)

Overview

• EITF: Emerging Issues Task Force
• Created by: Financial Accounting Standards Board (FASB)
• Established: 1984
• Purpose: Address diversity in accounting practices

Role of EITF

• Objective: Provide guidance within the existing accounting standards codification
• Key Activity: Reach consensus on proper accounting treatments for specific transactions
• Benefit: Allows FASB to focus on long-term projects; EITF handles short-term issues

Members

• Appointment: By the FASB
• Composition: Generally large firms, including large accounting firms and companies like Google
• Participation: Members of the SEC, e.g., the Chief Accountant, and FASB board members can also attend meetings

Process

• Meetings: Discussions to address issues with diverse accounting treatments
• Goal: Achieve a consensus solution for accounting treatments

Impact

• EITF Decisions: Treated as the preferred accounting treatment by the SEC
• Significance: Helps avoid the need for FASB to issue new accounting standards repeatedly