Question

The purpose of the Emerging Issues Task Force is to:

A. lobby the FASB on issues that affect a particular industry.
B. provide implementation guidance within the Codification framework to reduce diversity in practice on a timely basis.
C. develop a conceptual framework as a frame of reference for the solution of future problems.
D. do research on issues that relate to long-term accounting problems.

Answer 1

The purpose of the Emerging Issues Task Force is to address and provide guidance on how to account for new or unusual financial events within the Codification framework, aiming to reduce diversities in accounting practices.

Step-by-step explanation:

The purpose of the Emerging Issues Task Force (EITF) is to provide implementation guidance within the Codification framework to reduce diversity in practice on a timely basis.

The EITF does not lobby the Financial Accounting Standards Board (FASB), its role is to assist in the application of Generally Accepted Accounting Principles (GAAP) in the United States by addressing how to account for new and unusual financial transactions that can potentially create differing financial reporting practices. EITF issues are intended to be resolved quickly to prevent the need for the FASB to spend time addressing them.