The Securities and Exchange Commission (SEC) voted to give smaller public companies an extra year (until July 2007) to meet the requirements to file reports about the strength of their internal financial controls under the Sarbanes-Oxley Act. The SEC defined smaller public companies as those with a market value below $75 million.
Congress passed Sarbanes-Oxley in 2002 on the heels of several corporate scandals. But many public companies, especially smaller ones, had complained about the compliance burden. The SEC is also considering possible revisions to the law.