As expected, the Securities and Exchange Commission will likely grant smaller public companies and most foreign private issuers an extension on having to comply with the internal controls provisions of the Sarbanes-Oxley Act.
The initial reporting date for small public companies will be moved back six months, to fiscal years ending on, or after, Dec. 15, 2007, and full compliance won't be required until the company's first annual report for a fiscal year ending on, or after, Dec. 15, 2008.
Many foreign companies will get a full year's reprieve, meaning that an auditor won't have to attest to internal controls in their annual reports until fiscal years ending on, or after, July 15, 2007.
SEC Chairman Christopher Cox said that the actions were a show of the agency's efforts to minimize the burdens of Section 404 on both groups.
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