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Accounting News Roundup: More Convergence Drama; Washington’s Crackhead Accounting; Twitter’s New Digs in the Heart of San Francisco Dope Fiend Territory for a Tax Break | 08.02.11

Moody’s: IASB, FASB Accounting Standards Proposals Hitting Delays [PropertyCasuality360]
Proposed changes to insurance-contract accounting standards are running into delays amid vocal opposition, but whatever final conclusions ultimately emerge, they are unlikely to have a broad impact on credit ratings since new rules, by themselves, do not alter the economic position of an entity, according to Moody’s.

Official Washington’s Crackhead Accounting [The American Spectator]
There is no evidence that this bizarre deal of questionable constitutionality (e.g. the “Super Congress”) will actually lead to any real cuts. Nor is there any evidence that it will prevent the U.S. government from losing its long held triple-A credit rating. There is a promise of spending cuts, but overall federal spending will continue on its upward trajectory because Official Washington operates in the make-believe world of “baseline budgeting.” According to this crackhead accounting, both a cut and an increase may count as cuts.

State faults Binghamton’s accounting system [Sun-Bulletin]
The City of Binghamton’s accounting system lacks adequate controls to provide an accurate picture of city finances, an audit by the state comptroller’s office found. The 33-page report, released Monday, said the municipality has, among other things, overstated its general fund balance, has a city comptroller that hasn’t properly monitored certain accounts and has more than $13,000 in unaccounted funds from its parking operations.

Barclays to cut 3,000 jobs as profit drops [Reuters]
Barclays is set to cut about 3,000 jobs this year to reduce costs after a drop in bond trading and an insurance mis-selling charge cut first half profits by a third.

Money Funds Have Biggest Redemptions This Year Amid Debt Talks [Bloomberg]
Investors last week pulled more money from money-market mutual funds than any week this year as U.S. lawmakers failed to resolve the impasse over raising the debt ceiling. Withdrawals reached $37.5 billion, with about 70 percent of the redemptions coming from institutional funds that invest in U.S. government securities, according to data from the Investment Company Institute, a Washington-based trade group.

Accounting Departments Drive Demand for Electronic Document Management Solutions to Improve Bottom Line, According to IntelliChief [Benzinga]
IntelliChief LLC, the leading provider of document management and imaging solutions for the IBM i (System i, iSeries, AS/400), reports accounting department personnel are often both primary drivers and first adopters of paperless solutions in their companies. “Because of the cost savings to be gained by going paperless in accounting, and the bottom-line responsibilities that are top-of-mind with financial professionals, it makes sense that the demand for paperless solutions most often originates from within the accounting department,” says Brian Smith, IntelliChief Marketing Director.

No Day in Court for Bank Clients [WSJ]
Some small and regional U.S. banks are prohibiting unhappy customers from taking their complaints to court or joining class-action lawsuits, instead requiring them to resolve disputes through arbitration.

Preparing for New ‘Bottom Line’ on Leases [Memphis Daily News]
Obviously, the more significant a company’s leasehold interests are, the greater the impact of the new guidelines; for example, airlines, manufacturers and retailers. Additionally, regulatory rules will likely be impacted for banks and insurance companies. And, because the new guidelines deal with the accounting for leases on the balance sheet, the greatest impact will be on companies issuing audited financial statements.

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