March 3, 2005 by Canadian Underwriter
The U.S. Securities Exchange Commission (SEC) has extended the timeline for non-accelerated filers and foreign private issuers to comply with Sarbanes-Oxley (SOX).
Originally, companies had to comply with Section 404 of SOX which requires management reports on the company’s internal control over financial reporting and an auditor’s report be filed with annual results for the first fiscal year ending July 15, 2005. This deadline has been extended by one full year to July 15, 2006.
The extension also applies to compliance with the requirement to file evaluations of internal control over financial reporting and management certification of results.
“Given the burdens in designing and implementing Section 404 compliance for smaller and non-U.S. companies, this extension strikes the right balance,” says Alan Beller, director of the SEC’s division of corporation finance. “Companies should use the extension not to delay but to improve the quality of their efforts.”