How many times has the Securities and Exchange Commission said it's not planning to extend the Sarbox 404 deadline for small companies? At least twice in recent months -- and I wouldn't be surprised if we've missed a couple more.
Nonetheless, FinancialWeek reports, some small businesses are hedging their bets that the SEC will approve yet another last-minute extension. They're taking their time implementing the Sarbanes-Oxley section 404 requirements, and it may come back to haunt them. In a speech to the American Bar Association, the SEC's corporate finance division director said additional delays for small businesses are "not planned."
Management assessments for "non-accelerated filers" are due in 10-Ks filed after Dec. 15, the story says, so small companies that are still procrastinating could be in trouble. As Accretive Solutions accounting SVP Dirk Hobgood puts it:
It's a bit like squirrels putting away nuts for the winter. If non-accelerated filers don't get started on compliance soon, it could be a long winter.
Investors may not worry if the assessments aren't included in 2008 filings, but the SEC may make examples of well-known companies that file late.