Kieso's 13th Edition Intermediate Accounting - Ch. 1

"problem filter" - In essence, (the EITF) becomes a ____ for the FASB (1) emerging issues often attract public attention; (2) if not resolved quickly, they can lead to financial crises and scandal; (3) they can also undercut the public confidence in current reporting practices; the next step, possible governmental intervention, would threaten the continuance of standard-setting in the private sector - Why is the EITF so important for the ASB? What are some likely results that could occur without the EITF? (1) improvement in financial reporting, (2) simplification of the accounting literature and the rule-making process, and (3) international convergence - What are the three fundamental considerations the FASB must keep in mind it its rule-making activites, according to FASB chairman Bob Herz? (1) Smaller membership - the FASB consists of 5 members, rather than the relatively large 18-21 members of APB; (2) Full-time, Remunerated Membership - FASB members are well-paid, full-time members appointed for renewable 5-year terms. The APB members volunteered for their wor