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Accounting News Roundup: Finance Bill Passes Senate, Reconciliation with House Next; Dubai World Reaches Deal with Majority of Creditors; ParenteBeard Announces Emerging Growth Business Practice | 05.21.10

Senate Passes Finance Bill [WSJ]
All this fun Wall St. has been having – drawing populist rage, testifying before Congress – will be ending soon, sayeth Majority Leader Harry Reid (D-NV), “When this bill becomes law, the joyride on Wall Street will come to a screeching halt.” The Senate bill still has to be reconciled in with the House version before being sent to the President; the goal is to have the combined bill completed by the end of June.

Dubai creditors agree $14.4bn deal [Accountancy Age]
Deloitte’s restructuring magician, Aidan Burkett, has pulled a rabbit out of his hat for Dubai World. DW has come to an agreement with 60% of its creditors, that will see the conglomerate repay $14.4 billion, in two tranches, over thirteen years.


Opportunities Abound in Tax and Accounting [FINS]
As the economy recovers, the accounting firms have more opportunities in the tax and advisory areas while in the governmental world, the Federal Reserve, FBI and FDIC are looking for accounting professionals. Options are good.

John Burton, a Columbia Dean, Dies at 77 [NYT]
Mr Burton was the first chief accountant of the SEC where he “stiffened the requirements for financial reporting by companies and lobbied accounting firms to take greater responsibility for the accuracy and clarity of the financial records under their review.”

And regarding the accountant’s “undervalued” role in society (largely unchanged today), Mr Burton wrote that accountants had only themselves to blame:

Mr. Burton wrote an essay for The New York Times in which he argued that, yes, accountants were undervalued in society, but that in many ways they were themselves to blame for a lack of creativity and for not seizing opportunities to influence business trends and political decisions.

“Accountants are not primarily record keepers and checkers,” he wrote in the essay, titled “Where Are the Angry Young C.P.A.’s?,” “but measurers of economic and social phenomena whose measurements can significantly influence the allocation decisions of our society.”

ParenteBeard Launches Emerging Growth Business Services Practice [ParenteBeard PR]
Mid Atlantic firm ParenteBeard’s new Emerging Growth Business Services Practice will serve clients in various growth stages utilizing the firm’s resources in “audit and accounting, small business, tax, international tax, SEC and business advisory [services].”

Accounting News Roundup: The Tanning Tax Isn’t Fair; Dubai World Gets Another Life; Guy Hands Won’t Have to Go to London | 03.25.10;

Does New 10% Tanning Tax Discriminate Against Whites? [TaxProf Blog]
Are you being unfairly taxed just because you want some extra Vitamin D?!?


Dubai World, Nakheel Get $9.5 Billion Injection [WSJ]
For now at least, it appears that Aidan Burkett, Deloitte’s rock star restructuring expert has saved the day at Dubai World. DW will get $9.5 billion from the Dubai Government and plans to pay $26 billion to its creditors that include HSBC, Lloyds, Standard Chartered and RBS.

The complex deal that has taken months to draw up involves Dubai World issuing two tranches of new debt and converting $8.9 billion, or 38%, of its existing obligations into equity, the company said.

The new debt won’t be guaranteed by Dubai government, which has previously been a thorny issue between creditors and the city-state’s advisors.

Citi Loses Bid to Move EMI Trial [WSJ]
Remember Guy Hands, the founder of Terra Firma Capital, who hates taxes so much that he asks that his family come to visit him in Guernsey so that he doesn’t risk his non-resident status for England?

Well, you’ll be happy to know that Citi’s bid to get the trial moved to London was rejected by Judge Jed Rakoff so Hands won’t have to worry his pretty little head. Had the motion to move the trial been granted, Hands’ non-resident status could have been jeopardized and he may have had to pay taxes due to England. And, God forbid, do some of the traveling to see his family.