Final answer:
The Emerging Issues Task Force (EITF) is a committee formed by the Financial Accounting Standards Board (FASB) in the United States. It addresses emerging accounting issues that are not explicitly covered by existing accounting standards.
Step-by-step explanation:
The Emerging Issues Task Force (EITF) is a committee formed by the Financial Accounting Standards Board (FASB) in the United States. Its main purpose is to address emerging accounting issues that are not explicitly addressed in existing accounting standards.
The EITF discusses and analyzes these issues, and then provides guidance and recommendations on how to account for them. These recommendations are often used as a basis for developing new accounting rules or clarifying existing ones.
For example, if there is a new type of financial transaction that is not covered by current accounting standards, the EITF will evaluate the issue and provide guidance on how companies should record and report the transaction in their financial statements.