SEC finalises rules tied to Sarbanes-Oxley

Link: Sarbanes-Oxley special report

Under the new rules, companies are now required to reconcile any pro forma numbers they use in earnings releases back to generally accepted accounting principles (GAAP).

In addition, companies must also publish a code of ethics on an annual basis; disclose whether or not their board’s audit committee includes a financial expert as defined by the Sarbanes-Oxley Act; limit the ability of senior executives, board members and their immediate family members to sell company stock when employees are blocked from selling; and file all documents containing GAAP results-including earnings releases-as 8-Ks.

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