Committee would give an additional year for small businesses to comply with Section 404 of Sarbanes-Oxley; it also recommends widening the definition of ''small company.''
The Securities and Exchange Commission is considering additional relief for small companies in complying with the Sarbanes-Oxley Act.
Last week, the SEC's Advisory Committee on Smaller Public Companies recommended that small companies be given an additional year to meet the requirements of Sarbanes-Oxley Section 404, which requires companies to document their internal controls, according to Reuters.
The committee also reportedly suggested that the definition of "small company" be widened to benefit a larger number of businesses. Last year, the commission gave a break to "non-accelerated filers" — defined by the SEC as companies with a market capitalization under $75 million — by extended for one year their deadline for complying with Section 404. Those companies must now begin to file internal-control reports beginning with their first fiscal year ending on or after July 15, 2006.
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