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Emerging Issues Task Force

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Emerging Issues Task Force Essay

Emerging Issues Task Force

Abstract

In 1982, the Financial Accounting Foundation Structure Committee produced a report on operating efficiency that indicated a need for more timely guidance on implementation questions. That report resulted in the formation of an advisory group, which evolved into the Emerging Issues Task Force (EITF). This task force was established to assist the Financial Accounting Standards Board (FASB) in improving financial reporting through the timely identification, discussion, and resolution of financial accounting issues. (FASB, 2011) This paper discusses and explores the EITF in greater detail.

Discuss how the Emerging Issues Task Force influences Generally Accepted Accounting Standards.

The Emerging Issues Task Force (EITF) was formed in 1984 to respond to the recommendations of the Financial Accounting Standards Board (FASB) task force on timely financial reporting guidance.

The EITF influences general accepted accounting standards by providing improved financial reporting through timely identification, discussion, and resolutions within the framework of an existing authority. The EITF designed to reduce diversity in practice on current issues in a quick and timely manner that should not exceed three to four annual meetings. This advisory board also minimizes the need for the FASB to spend time and effort addressing narrow implementation, application, or other emerging issues that can be analyzed within existing GAAP. However, these time constraint requirements can often lead EITF members to be hasty to reach consensus or become gridlocked in their effort to establish guidelines. Thus, influencing the FASB to postpone either writing literature on issues or forcing decisions that may require further research. (Financial Accounting Standards Board,

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