Which of the following is true regarding the Emerging Issues Task Force (EITF)?
A)It has formal authority to establish GAAP.
B)Members of this group consist of CEOs of six major corporations and the chief accountant of the SEC.
C)It is concerned with highly technical issues, such as financial instruments, which may affect firms in virtually every industry.
D)All of the above

Question

Quizplus · Accepted Answer

The Emerging Issues Task Force (EITF) is a group of accounting professionals that meets to discuss and provide guidance on emerging accounting issues. It does not have formal authority to establish GAAP, as that responsibility falls on the Financial Accounting Standards Board (FASB). The members of the EITF consist of representatives from various industries, not just CEOs of major corporations and the chief accountant of the SEC. However, the EITF is concerned with highly technical issues that may affect firms in virtually every industry, such as financial instruments. Therefore, option C is the correct choice.

Which of the Following Is True Regarding the Emerging Issues