Another 404 delay for small companies coming

If there is one area where people across the political spectrum have rallied, it is in the area of small company compliance. Let's face it, for those opposing Sarbanes-Oxley-like regulations, the stars have aligned pretty well--for example, the rise of AIM in London, the Democrats' need to support entrepreneurial tech companies and the overall competitiveness focus. All this has worked well. So for small-cap companies, the 404 compliance deadline has already been pushed back; companies don't have to comply until they report for fiscal years ending on or after December 15 and, for auditors' attestation, for years ending after December 15, 2008. This has been a godsend. Now, two politicians, Senators John Kerry and Olympia Snowe, have called for another extension. So you have to wonder: in this climate, it may be that compliance for small-caps might be delayed repeatedly and watered down significantly. But you have to think that some sort of Sarbox-like rules would be worth it. For one thing, it might cut back on restatements and reported material weaknesses, which are still rising for small cap companies, while falling for Sarbox-compliant companies. This is a tricky issue.

For more:
- here's an article from cfo.com