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.
Sample Issuances of the Emerging Issues Task Force
Here is a sampling of some of the more important EITF issuances:
EITF 99-19 - Reporting Revenue Gross vs. Net. Clarifies whether a company should recognize revenue as gross (principal) or net (agent).
EITF 00-23 - Issues Related to Stock Compensation. Provides guidance on the accounting treatment of various forms of stock-based compensation.
EITF 01-08 - Determining Whether an Arrangement Contains a Lease. Helps businesses determine if a contract should be accounted for as a lease under GAAP.
EITF 02-17 - Recognition of Customer Relationship Intangible Assets. Provides guidelines on when to recognize intangible assets like customer lists in business acquisitions.
EITF 03-01 - Other-Than-Temporary Impairments of Investments. Establishes criteria for recognizing impairment losses on investments.
EITF 06-03 - How Taxes Collected from Customers Should Be Presented in Financial Statements. Addresses whether sales taxes should be included in revenue or treated as a liability.