By Linda Cavanaugh, CPA - Small and nonpublic businesses have gotten a break from the SEC and the FASB.
The SEC proposed a one-year extension of the SOX Section 404(b) external audit requirement for smaller companies. The companies will still need to comply with the management's assessment of internal control as of December 31, 2007, but they don't have to get their auditors to sign off on the assessment until next year. The SEC wants to conduct a cost study to determine the real-world costs and benefits of Section 404.
The FASB issued FSP Fin 48-2 which defers the effective date of FIN 48 "Accounting for Income Taxes" until fiscal years beginning after December 15, 2007, (which is this year)for certain nonpublic companies. These companies do not need to comply with the uncertain tax position disclosures for their 2007 10Ks.
The effective date for AICPA SOP 07-1 "Clarification of the Scope of the Audit and Accounting Guide, Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies" has been deferred indefinitely by the FASB. Maybe they are waiting until the AICPA shortens the name.
I hope you are lucky enough to fall into the categories of businesses who get to take these deferrals. It is always better to put off until tomorrow, so you can play this weekend.