Top Story

• Obama, Boehner begin negotiations to avert "fiscal cliff"
  President Barack Obama and House Speaker John Boehner, R-Ohio, have started negotiations to avoid the $607 billion in automatic spending cuts and tax increases that are scheduled to take effect in January if Congress doesn't act. Obama says he wants an immediate tax-cut extension for people earning less than $250,000 and for top earners to pay more. Boehner says he wants to avoid tax rate increases and spending cuts as Congress overhauls entitlement spending and the tax code. Obama, Boehner and other Congressional leaders will meet at the White House on Friday to discuss the "fiscal cliff." Bloomberg (11/10)     

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Financial Focus

• Fed gives banks second chance on stress tests
  The Federal Reserve announced it will give banks a second chance when it comes to capital stress tests. The 19 largest institutions will get a preliminary result. They can then take measures, such as altering stock-buyback or dividend policies, to put themselves in a position to pass. The Fed will still publish the initial capital proposal results. Bloomberg (11/9)     

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A&A Report

• FASB makes decision on "going concern" requirement
  The Financial Accounting Standards Board has voted to adopt a requirement under which management assesses whether an entity is able to remain in business as a going concern. The trigger for management to begin disclosing financial difficulties is when the entity is "near more likely than not" the point where it may not be able to meet its financial obligations. There are still several issues to be settled before an exposure draft is released next year. JournalofAccountancy.com (11/8)     

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Tax Spotlight

• Estate planning for nonresidents requires special care
  With increased global mobility, nonresident aliens or individuals who lived in the United States at one time can become unwittingly subject to U.S. estate tax rules. Michael Moore, CPA, explains how practitioners performing estate planning for nonresident individuals must carefully take into account the special estate tax rules that apply to nonresidents; otherwise there can be unpleasant surprises for the estate and heirs. The Tax Adviser (11/2012)     

Advisory Services

• Advisers tell the rich there's no need to panic
  Financial advisers are telling wealthy clients who are displeased with President Barack Obama's re-election that they should avoid making rash decisions with their money. Advisers say there could be market volatility as politicians debate taxes and spending, but they aren't predicting doom and gloom. Reuters (11/10), InvestmentNews (free registration) (11/11)     

Policy & Regulatory

• Basel III implementation is on hold in U.S.
  The Federal Reserve and other regulators decided to postpone implementation of Basel III capital rules for U.S. banks. The rules were supposed to go in effect Jan. 1. Regulatory agencies seek to align U.S. rules with standards determined by the Basel Committee on Banking Supervision. Bloomberg (11/9), MarketWatch (11/9), CNBC/The Associated Press (11/9)     

• SEC opens formal investigation of Knight's trading glitch
  The Securities and Exchange Commission has started its formal investigation of the $457.6 million trading glitch that affected Knight Capital Group in August. Knight says faulty software was to blame. The U.S. inquiry will focus on whether the company adhered to rules governing risk-control procedures. Bloomberg (11/9)     

• Other News

• Geithner will keep Treasury post through inauguration
  The Hill/On the Money blog (11/9)     

International View

• EU might regulate money market funds
  Money market mutual funds and securities-lending agreements are expected to be part of the European Commission's call for legislation to regulate shadow banking. "The overall objective is to make sure that our new regulations do not result in pushing activities to the world of shadow banking," said Stefaan De Rynck, spokesman for EU Internal Market Commissioner Michel Barnier. Bloomberg (11/9)     

• Japan appears headed toward recession
  Japanese gross domestic product contracted 0.9% in the third quarter compared with Q2 and 3.5% compared with Q3 of 2011. Growing tension with China and slowing growth worldwide hurt exporters. Economists expect another contraction this quarter, putting Japan in a technical recession. BBC (11/12), Reuters (11/12)     

Leadership & Trends

Hot Topics

Top five news stories selected by CPA Letter Daily readers in the past week.

• "Fiscal cliff" could add $3,700 to 26M households' tax bill (The Washington Post)

• Investors hope Obama will address "fiscal cliff" immediately (Reuters)

• Hurricane Sandy tax relief announced (Journal of Accountancy)

• Impending tax cliff makes business succession tax planning critical (The Tax Insider)

• Low-wage employers turn to part-timers to avoid health care law (The Wall Street Journal)

• Results based on number of times each story was clicked by readers.

AICPA News

• Working draft of a new chapter of the Testing Goodwill for Impairment guide
  The AICPA's Financial Reporting Executive Committee has issued a working draft of a new chapter of the AICPA Accounting and Valuation Guide Testing Goodwill for Impairment. The new chapter, Qualitative Assessment, discusses and illustrates how to perform the optional qualitative assessment to determine whether it is necessary to perform the two-step goodwill impairment test described in FASB ASC 350-20. This new chapter was developed in response to feedback received on the working draft released in Nov. 2011. Interested parties are encouraged to submit their informal feedback on the new chapter by Dec. 31, 2012.     

• Hurricane Sandy web page: Available resources for the profession
  We are concerned for everyone who has been touched by the devastation of Hurricane Sandy. To help members in the Mid-Atlantic and Northeast regions recover, the AICPA has put together a comprehensive web page with information and resources, including how to apply for assistance through the AICPA Benevolent Fund, disaster and financial planning guides and materials, tax extension relief information and more. The site will be updated regularly, and AICPA Member Service specialists can be reached at 888.777.7077 or service@aicpa.org.     

SmartQuote

I observe the physician with the same diligence as the disease." --John Donne, British poet, satirist, lawyer and cleric

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