Emerging Issues Task Force definition
/What is the Emerging Issues Task Force?
The Emerging Issues Task Force (EITF) is a committee of the Financial Accounting Standards Board (FASB), charged with issuing timely implementation guidance relating to the Accounting Standards Codification. The EITF deals with issues that are too narrow in scope for the FASB, and which can be resolved within the existing framework provided by generally accepted accounting principles. The consensus positions of the EITF are included in the Accounting Standards Codification. These consensus positions prevent divergent accounting practices from being implemented. The EITF was formed in 1984.
What is the Purpose of the Emerging Issues Task Force?
A key reason for the existence of the EITF is that it reduces diversity in the application of GAAP among users. This results in much more consistency in entity reporting, which makes it easier to compare the financial results and financial positions of reporting entities within an industry.