Emerging Issues

Research of Emerging Accounting Issues

Issue No. 12-A. “Not-for-Profit Entities: Classification of the Same Proceeds of Donated

Financial Assets in the Statement of Cash Flows”

Letra Burkett-Young

2013 August 25

ACC563

The Emerging Issues Task Force, also known as the EITF, was formed in the year 1984.

This task force was formed based on recommendations of the FASB’s task force for financial

reporting guidance. The EITF was created to reduce the need for the FASB to spend time and

effort to address narrow implementation, application or other issues that can be analyzed within

GAAP. (FASB/EITF). In this paper I will provide my research where I have viewed the

role of the EITF and analyzes one current issue of the EITF, provide information on how a company’s

accounting and financial reporting impacts the work of the EITF, create a recommendation,

provide the differences in the accounting treatment between GAAP and IFRS and also look

at the role of the EITF should the accounting professional adopt a global set of accounting

standards.

The Role of the EITF as relates to the FASB:

The Emerging Issues Task Force, abbreviated as the EITF, was formed in the year 1984. The

EITF helps the FASB (Financial Accounting Standards Board) to improve financial reporting

by providing timely identification, as well as discussion and resolution of issues in

accounting which are within the FASB framework known as the Accounting Standards

Codification. The framework represents the source of authoritative standards of accounting in

general and reporting and is to be applied to nongovernmental entities; they are issued side by

side to those of the SEC (FASB).

The EITF announces the guidance of implementation of financial and reporting procedures

within the FASB framework in order to reduce the diversity in practice in a timely manner on a basis that is timely. The EITF also minimizes the need of the FASB to spend crucial effort and...