The US Securities and Exchange Commission on Wednesday said it wants to ease compliance for smaller public and some foreign companies required to implement controversial internal controls rules.
The announcement stems from public comments the SEC gathered for about a month on guidance for management on how the agency can help companies assess their internal controls over financial reporting under the post-Enron reform law known as Sarbanes-Oxley.
In one move aimed at addressing complaints that rules are costly, the SEC said it is extending the deadlines by which those companies, or "non-accelerated" companies, are required to file a report by management and another by an auditor assessing the effectiveness of the company's internal controls.
The extensions would affect about 44 percent of US publicly traded companies and 38 percent of foreign companies that file periodic financial reports with the investor protection agency. With some private companies discouraged from going public, the SEC said it is also seeking to provide a transition period for new smaller US companies.
The SEC said it is seeking comments for 30 days on those proposals. The US market watchdog is immediately putting into effect a one-year extension for foreign companies, excluding "large accelerated" companies, to file an auditor's attestation report. They still will be required to file a management's report on time.