U.S.-China audit talks seen making only modest progress [Reuters]
U.S. and Chinese securities regulators may soon strike a deal that would allow the Americans some access to Chinese auditors, but it is likely to be more superficial than Washington wants. A string of accounting scandals at U.S.-listed Chinese companies has increased pressure on regulators in both nations to toughen oversight of Chinese auditors. But a full-fledged agreement that allows the U.S. auditor watchdog, the Public Company Accounting Oversight Board (PCAOB), to review the work and papers of China-based auditors through formal inspections would be difficult to achiestrong>Obama to Push for Wider Deal With G.O.P. on Deficit Cuts [NYT]
Heading into a crucial negotiating session on a budget deal on Thursday, President Obama has raised his sights and wants to strike a far-reaching agreement on cutting the federal deficit as Speaker John A. Boehner has signaled new willingness to bargain on revenues.

New Accounting Rule Would Favor Hedgers [CFOJ]
The proposed rule, International Financial Reporting Standard 9, greatly expands the kinds of transactions that qualify for hedge accounting under the current rule, International Accounting Standard 39, and the SEC is debating when, and under what conditions, U.S. companies would have to report their results in IFRS instead of U.S. GAAP. Hedge accounting is one area where the two regimes currently stand far apart.

Glass Lewis Faults RIM Governance Stance [Bloomberg]
Research In Motion Ltd. (RIMM)’s decision to study the overhaul of its management structure to avoid a shareholder vote next week indicates it’s avoiding a commitment to appoint an independent chair, Glass Lewis & Co. said. “The appointment of independent board leadership does not require further study, but rather concrete action,” Dimitri Zagoroff and Marian Macindoe, analysts with the San Francisco- based proxy adviser firm, wrote in a report. Glass Lewis advises investors that manage more than $15 trillion on proxy voting.

In Minnesota shutdown, workers who calculate the cost are laid off [WaPo]
Now more than six days old, the shutdown has continued to shutter parks and toll booths and to leave thousands of government workers at home. The state’s Democratic governor and Republican lawmakers continued to wrangle, without resolution, over a $5 billion budget gap Wednesday. The talks were continuing without clarity on the shutdown’s cost. The staff members who would calculate those figures are “currently laid off,” said John Pollard, a spokesman for Minnesota Management and Budget.

Another Reason to Insist on the Ring [Tax Update]
Cohabitation has its tax consequences.

House, Senate Tax Panels to Hear Ideas for Tax Overhaul at Joint Session [WSJ]
House and Senate tax-writing committees will hold a rare joint hearing to examine potential ideas for a tax overhaul. It’s reportedly the first joint hearing by the two panels on a tax issue since 1940, according to a press release issued late Wednesday. The hearing next Wednesday in the Capitol Visitor Center could signal a greater degree of cooperation over tax changes in the future, as the panels gear up for what could be an intensive effort to overhaul the federal tax code.

IASB’s New Pension Accounting Will Mean Big Changes [Institutional Investor]
A bunch of foreign corporations likely are starting to reevaluate their pension plans’ asset allocations, thanks to the International Accounting Standards Board. In June the IASB, whose accounting rules are used by about 120 countries that include all European Union members, published its amendments to IAS 19 Employee Benefits, which cover how defined benefit plan sponsors handle pensions in their financial statements.

Madam admits tax fraud in Denver brothel case [9News]
The madam of a high-end prostitution business that allegedly catered to some of Denver’s most famous and successful residents admits she’s guilty of owing the IRS tens of thousands of dollars in unpaid taxes and of tax evasion. Brenda Stewart, owner of Denver Sugar/Players changed her plea in federal court Wednesday afternoon from not guilty to guilty to one count of tax evasion. The government moved to dismiss the other 69 counts against her.

New accounting rule would ease Greek pain: IASB [Reuters]
European Union banks would have more breathing space from losses on Greek bonds if the bloc adopted a new international accounting rule, a top standard setter said on Tuesday. The International Accounting Standards Board (IASB) agreed under intense pressure during the financial crisis to soften a rule that requires banks to price traded assets at fair value or the going market rate.

Obama Summons G.O.P. and Democratic Leaders for Deficit Reduction Talks [NYT]
Mr. Obama, who met secretly with Spr at the White House on Sunday to try to advance the talks, called House and Senate leaders from both parties to the White House for further negotiations on Thursday. And he rejected talk of an interim deal that would get the government past a looming deadline on raising the federal debt limit without settling some of the longer-term issues contributing to the government’s fiscal imbalances.

U.S. Will Probably Adopt IFRS Standards, IASB Chairman Says [Bloomberg]
The U.S. will probably adopt International Financial Reporting Standards, said Hans Hoogervorst, the new chairman of the London-based accounting organization IASB. The U.S. Financial Accounting Standards Board, which wanted to expand the use of fair-value accounting to all financial assets, has dropped that model and “that has made talking to each other a lot easier,” Hoogervorst told delegates at an IFRS conference in Zurich today.

Antitax Extremism in Minnesota [NYT]
More than 40 state agencies have closed, including the state parks over the July Fourth holiday. Courts and public safety agencies are operating, but essential services for the poor, like food pantries and child care subsidies, have evaporated. Many parents say they may have to quit their jobs if state-subsidized child care does not resume quickly. The shutdown will cost the state money, since many of the 22,000 laid-off workers will receive unemployment benefits and health insurance, while the treasury is unable to collect on tax audits, lottery tickets and park fees.

IFRS Is for Criminals [Grumpy Old Accountants]
Possible prerequisite for using principles-based accounting: walking on water.

Obama’s Twitter Town Hall: He’ll Take Questions in 140 Characters or Less [Bloomberg]
President Barack Obama will take questions today in what White House officials are calling his first Twitter town hall, complete with a “Tweetup.” Users of the social networking service can post questions for Obama before and during the event, which starts at 2 p.m. Washington time. Questions should fit Twitter’s 140-character limit and include the hashtag #askObama.

Casey Anthony, acquitted of murder in toddler’s death, faces IRS tax lien [DMWT]
I still don’t know who this woman is but she sure is popular on Twitter.

What does my boss want from me? [Accountant by Day]
Short answer: your soul. ABD has a slightly longer answer.

SEC Gauging U.S. Global Accounting Readiness [CFOJ]
The long road to determining whether U.S. companies will ever adopt international accounting rules will take another turn this week as U.S. securities regulators hold three roundtables to try to assess how ready the world’s largest economy would be if it goes forward with a plan to adopt IFRS. While the U.S. Securities and Exchange has spent most of the past two years slowing down an earlier plan that would have had U.S. companies using IFRS as soon as 2014, it aims to decide in the next year whether even a slower incorporation of IFRS is a feasible option.

Americans Rank Airlines Lower Than the IRS [ABC]
Overall, the U.S. airline industry scored a 65. That’s lower than the satisfaction score for Domino’s Pizza. Lower than the Post Office. Lower than the IRS. Well, lower for electronic tax filers, anyway, according to the most recent government rankings.