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Oct. 2,
2009
SEC issues final extension of SOX 404(b) for
non-accelerated filers
Today the SEC announced it would extend the deadline for
non-accelerated filers to comply with Section 404(b) of
the Sarbanes-Oxley Act. The Commission moved the
deadline six months from fiscal years ending on or after
Dec.15, 2009, to fiscal years ending on or after June
15, 2010.
The SEC granted an extension to Dec. 15, 2009, in order
to complete a study of whether additional guidance
provided to company managers and auditors in 2007 was
effective in reducing the costs of compliance. The
139-page study, posted on the
SEC’s Web site, stated that, “There is an
economically and statistically significant reduction in
Section 404 compliance costs following the 2007
reforms.” Because the study was published less than
three months before the Dec.15 deadline, the Commission
determined another extension is appropriate and
reasonable so that companies and their auditors can
better plan for Section 404(b) compliance.
Non-accelerated filers should note that this is the
last extension the SEC will grant regarding Section
404. In the
SEC’s press release, Chairman Mary L. Schapiro
said, “Since there will be no further Commission
extensions, it is important for all public companies and
their auditors to act with deliberate speed to move
toward full Section 404 compliance.”
For more information
For more information
about this recent development, contact:
Trent Gazzaway
National Managing Partner
Public Policy and Corporate Governance
Trent.Gazzaway@gt.com
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This Grant Thornton LLP Governance Alert provides
information on recent SEC guidance. It is not a
comprehensive analysis of the subject matter covered and
is not intended to provide accounting or other advice or
guidance with respect to the matters addressed in the
bulletin. All relevant facts and circumstances,
including the pertinent authoritative literature, need
to be considered to arrive at conclusions that comply
with matters addressed in this Alert. For additional
information on the topics covered in this Alert, contact
Grant Thornton LLP. |
