General Information News: June 8 Update
Below is a list of stories currently in the news regarding climate and energy.
Fed’s Tarullo hints at higher capital requirements
“Federal Reserve Governor Daniel Tarullo suggested that major financial institutions could be required to hold as much as 14% of assets as capital to help prevent another crisis. ‘The regulatory structure … should discourage systemically consequential growth or mergers unless the benefits to society are clearly significant,’ Tarullo said.” The Wall Street Journal (tiered subscription model) <http://r.smartbrief.com/resp/cVymDynWocdHAxrAfCzfgwfCsFeh?format=standard> (6/4)
Governments might need to burst commodity-price bubble, U.N. says
“A United Nations report suggests a bubble in some commodity prices might require government intervention. ‘The changing role of commodity markets, which are turning into financial markets, has enormous repercussions for the economy,’ said Heiner Flassbeck, a director of the U.N. Conference on Trade and Development and a co-author of the report. ‘The possibility of allowing governments’ direct intervention in the physical and financial markets needs to be considered,’ the report says.” The Guardian (London) <http://r.smartbrief.com/resp/cVymDynWocdHAxrYfCzfgwfCDMSx?format=standard> (6/5), The Wall Street Journal (tiered subscription model)/Dow Jones Newswires <http://r.smartbrief.com/resp/cVymDynWocdHAxskfCzfgwfCLvyA?format=standard> (6/5)
How FASB’s operating lease proposal could affect large companies
“The Financial Accounting Standards Board’s proposal to reclassify operating leases as debt would increase debt levels and reduce earnings of many large corporations. Companies in the Standard & Poor’s 500 have at least $549 billion in operating leases, according to estimates by David Zion, an accounting analyst at Credit Suisse.” Read this AICPA Accounting and Auditing Brief on the FASB/IASB Lease Accounting Project <http://r.smartbrief.com/resp/cVymDynWocdHAxsIfCzfgwfCeWSk> . Barron’s (special access for SmartBrief readers) <http://r.smartbrief.com/resp/cVymDynWocdHAxsUfCzfgwfCqPeN?format=standard> (6/4)
Denying tax deductions for public policy violations
“Recent events, such as last year’s oil spill in the Gulf of Mexico, have drawn attention to the disallowance of deductions where allowing the deductions would violate public policy.” This article discusses the disallowance of deductions under Sec. 162 and Sec. 165 for public policy reasons. The Tax Adviser <http://r.smartbrief.com/resp/cVymDynWocdHAxtEfCzfgwfCvusL?format=standard> (5/2011)
IRS slows refunds to adoptive parents as looks for fraud
“Parents adopting children, especially special-needs children, are entitled to tax credits under the tax code. However, the Internal Revenue Service has been slow in providing refunds as they investigate each claim for possible fraud.” Yahoo!/CNN Money <http://r.smartbrief.com/resp/cVymDynWocdHAxucfCzfgwfCyjmf?format=standard> (6/4)
Levin: Revenue-neutral tax code overhaul would hurt middle class
“Rep. Sandy Levin, D-Mich., called for a careful examination of what a revenue-neutral approach to the tax code overhaul would mean for middle- and low-income taxpayers. The elimination of tax credits and incentives necessary for such an approach would disproportionately affect this segment of the population, Leven said.” The Hill/On the Money blog <http://r.smartbrief.com/resp/cVymDynWocdHAxuofCzfgwfCBIsS?format=standard> (6/3)
Bill would grant tax parity to domestic partners in health plans
“Legislation has been introduced in the House that would bring tax parity and equal treatment to health plan beneficiaries who are domestic partners. Introduced by Rep. Jim McDermott, D-Wash., the bill would eliminate higher taxes for non-spouse partners and the companies that provide insurance.” Accounting Today <http://r.smartbrief.com/resp/cVymDynWocdHAxuAfCzfgwfCGCbt?format=standard> (6/3)
Changing IFRS standards used to justify delay in India convergence
“Some in the Indian accounting profession are pointing to the shifting regulations under the International Financial Reporting Standards regime as justification for waiting to bring the country’s standards in line. ‘Given the changes taking place in core IFRS, the question that needs to be debated is should India Inc. wait for the dust to settle and defer implementation of Ind-AS (Indian accounting standards) to, say, 2014,’ says Vinayak Pai, an IFRS consultant.” Learn more about IFRS on IFRS.com <http://r.smartbrief.com/resp/cVymDynWocdHAxuMfCzfgwfCMQhi> . LiveMint.com/The Wall Street Journal (India) <http://r.smartbrief.com/resp/cVymDynWocdHAxuYfCzfgwfCUyNl?format=standard> (6/6)
