Question

Which of the following is/are not true with respect to the role that the ETF plays in assisting the FASB with standard setting?

1) Identifying significant emerging accounting issues (i.e., unique transactions and accounting problems), which it feels the FASB should address.
2) Developing consensus positions on the implementation issues involving the application of standards.
3) Simplifying user access by organizing and categorizing (codifying) all authoritative U.S. GAAP in one database.
4) Creating a codification research system that is up to date, including the most recently updated standards.

Answer 1

The ETF does not participate in developing consensus positions on the implementation issues involving the application of standards. The correct option is: 2).

Step-by-step explanation:

Of the options presented, the statement that is NOT true with respect to the role that the ETF plays in assisting the FASB with standard setting is:

1. Identifying significant emerging accounting issues (i.e., unique transactions and accounting problems), which it feels the FASB should address.

The ETF, or Emerging Issues Task Force, is responsible for identifying and addressing emerging accounting issues, and it recommends action to the FASB, or Financial Accounting Standards Board. Therefore, Option 1 is true and the correct answer is Option 2.