The Financial Reporting Council has today published draft rules for UK and Irish companies listed on US stock exchanges on how to comply with section 404 of the Sarbanes Oxley Act.
Accountancy Age, 26 Oct 2004
The guide is based around the respected Turnbull guidance with which most public companies in the UK already comply. All comments must be submitted to the FRC by 30 November 2004.
Section 404 requires companies listed in the US to report on the efficacy of their internal controls on financial reporting.
Richard Fleck, chairman of the FRC's review group, said: 'The SEC has stated that the Turnbull report provides a suitable framework for evaluating the effectiveness of internal controls over financial reporting.
'This is good news for companies that are already using the Turnbull report in the UK and Ireland and wish to use it to meet these US requirements as well.'
The FRC plans to finalise the guide before the end of the year ahead of requirements for UK companies to comply with SEC rules for reporting years ending on or after 15 July next year.
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