Response to the following problem:
You Decide:
Should the Emerging Issues Task Force (a group organized to assist the FASB in developing accounting positions) be allowed to have members of large corporations sit on their committee and vote on accounting issues that are facing today's companies, or should it be left to the accounting firms?
That is what happened with J.P. Morgan at a June 2002 meeting of the EITF (Emerging Issues Task Force), an extension of the FASB. J.P. Morgan blocked a vote that would have barred companies from recognizing immediate profits or losses upon entering an energy-trading contract, a move that is critical to the financial statements of J.P. Morgan and others in its industry.