Layla Asali's comments were quoted concerning the scope of the new guidance project to address uncertainties raised by the next-day rule in reg. section 1.1502-76. During the American Bar Association Taxation Section meeting on September 20, she asked whether the guidance might create a new set of consolidated return rules that stray from the normal accrual method of accounting. IRS Associate Chief Counsel William Alexander responded that there has been much time and effort invested into the tax system to develop the accrual method and the likelihood that a better option will exist in the coming months is low. The ABA panel also discussed recently released proposed section 381 regulations, which provide that all of a target corporation's attributes, including earnings and profits (E&P) remain with the direct acquiring corporation. Asali noted that the newly proposed section 381 regulations provide "another illustration of why it might really matter" whether, for example, Revenue Ruling 78-130 is still good guidance. She observed that under the approach of the proposed regulations, taxpayers will need to know exactly how their transactions should be characterized to figure out who the acquirer is and where the E&P ends up.