Earlier today the SEC released its plan for dealing with some of the problems with Sarbanes-Oxley an SEC advisory panel highlighted last month. Jack Ciesielski has the goods.
One of the biggest concerns raised by the advisory panel was the disproportionate impact of tougher accounting requirements on smaller companies. According to the plan released today, the SEC solution is to give smaller companies more time to meet these requirements.
Non-accelerated filers will have until years beginning after December 16, 2006 to implement Section 404 rules. Currently, they’d have to comply in the first year ending after July 15, 2006 to comply. This will make a 404 report on internal control on non-accelerated calendar year filers first show up in 2008, on the internal controls in effect at the end of 2007.
We're sure that smaller companies will appreciate the extra time. And so will the accounting firms who get to bill them during those additional six months.
404 Relaxation: The SEC Opens Up [The AAO Weblog]