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Accounting News Roundup: FASB, IASB Delay Financial Statement Presentation; Young Buck Auction – CANCELLED!; IRS Silent on 1099 Rule Guidance | 10.27.10

Fed Gears Up for Stimulus [WSJ]
The central bank is likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, a measured approach in contrast to purchases of nearly $2 trillion it unveiled during the financial crisis. The announcement is expected to be made at the conclusion of a two-day meeting of its policy-making committee next Wednesday.

FASB, IASB Pull Up on Financial Statement Presentation [A&A Update/Compliance Week]
The Financial Accounting Standards Board and the International Accounting Standards Board met in a joint session last week to make progress on a number of major initiatives to revise both U.S. Generally Accepted Accounting Principles and International Financial Reporting Standards. They agreed they’ve stretched their respective staffs to capacity and can’t proceed any further on a long-running effort to revise the overall presentation of financial statements, nor with a project to better define how to treat financial instruments that look and feel a lot like equity.

Clifton Gunderson hiring more than 40 in Timonium [Baltimore Business Journal]
CG is looking to hire 40 professionals – both audit and tax pros – by January 1st.

CIT Profit Beats Estimates Amid Accounting Revisions [Bloomberg]
Third-quarter results were boosted by $265.9 million in “fresh-start accounting,” or FSA, adjustments related to changes the company made to balance-sheet values when it exited bankruptcy protection, according to the statement. Earnings aren’t comparable with the year-ago quarter before CIT’s bankruptcy.

IRS cancels auction of rapper Young Buck’s property [Tennessean]
No Ms. Pac Man. No Scarface poster. And sure as hell, no LV holster. YB’s lawyer filed suit to stop the auction and he’s selling $600k+ in real estate to settle up. Hmm. Selling real estate to keep jewels, 2Pac posters et al. Yeah, that actually seems about right.

Accounting Firm M&As: A Market Update [JofA]
Abruptly in the fall of 2008, organic growth stopped. Since many growth-oriented firms require ongoing expansion as a key part of their culture, they started looking at M&As again as a way to grow the top line. This has led to more flexible criteria for M&A candidates in many cases and a significant increase in M&A activity in many markets.

Lobbyists Court Potential Stars Of House Panels [NYT]
Ernst & Young, the global accounting firm, hosted a fund-raising breakfast late last month for Representative Dave Camp that drew so many donors the firm’s lobbyists had to pull extra chairs into their largest conference room.

IRS continues to dodge questions on 1099 rule [On the Money/The Hill]
Despite repeated requests from House Small Business Committee ranking member Sam Graves (R-Mo.) for how the IRS intends to implement the 1099 reporting rule, IRS Commissioner Douglas Shulman continues to decline to provide him the information.

“I am extremely disappointed by the IRS’s ongoing refusal to help employers understand the impact of this hefty requirement,” Graves said in prepared remarks. “The questions and confusion surrounding the 1099 reporting rule have stalled small business growth in America.”

IRS examines Build America Bonds, compliance [Reuters]
The Internal Revenue Service is reviewing several taxable Build America Bonds issued in 2009 and 2010 to make sure they complied with tax law, according to a notice on the agency’s website.

The IRS is also seeking to understand “practices in the relatively new market for BABs,” the notice said.

Build America Bonds were created in last year’s economic stimulus plan to spur investment in infrastructure. The bonds have become popular with cities and local governments because they pay a federal rebate equal to 35 percent of interest costs.

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