The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

SEC gives corporates some SOx breathing space

Many US corporates will be breathing a sigh of relief after the announcement by the US Securities and Exchange Commission (SEC) that it will grant certain companies an extra 45 days to submit reports on their internal controls. At present companies are obliged to submit annual reports to the SEC within 75 days after the end of the fiscal year. Section 404 of Sarbanes-Oxley requires that these annual reports include a management assessment on internal controls over financial reporting, as well as the related auditor's report on the management's assessment.

Companies that qualify for the extension are those with a fiscal year ending between and November 15 2004 and February 28 2005, and with market capitalization of between $75 million and $700 million.

All other information required in annual reports, such as audited financial statements still have to be submitted on the original date.

Alan Beller, director of corporate finance at the SEC, says: ?This exemption will encourage companies to file important information for investors, including audited financial statements, on a timely basis, while providing an appropriate accommodation for internal control reports.?

The SEC says it has become aware of the resource constraints at accounting firms and smaller public companies and thinks an extension of the deadline for the reporting of internal controls will better enable them to implement the internal control requirements.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree