ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release September 18, 2006 #06-53
E-mail: [email protected]

ACB SUPPORTS DELAY IN SEC FILINGS FOR NON-ACCELERATED FILERS

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WASHINGTON, D.C. — America’s Community Bankers supports the Securities and Exchange Commission’s proposal to delay implementation of section 404 internal control requirements for non-accelerated filers, but said the proposal doesn’t go far enough.

ACB has consistently urged the SEC to allow banks to meet the section 404 requirements by complying with the current approach to internal control and attestation requirements contained in section 36 of the Federal Deposit Insurance Corporation Improvement Act. ACB also urged consideration of relief consistent with the FDICIA exemption for smaller community banks.

In its comment letter, ACB said it supports the proposed 17-month extension of time for compliance with section 404(b), the auditor’s attestation report on management’s assessment of internal control over financial reporting. The deadline would be extended to fiscal years ending on or after Dec. 15, 2008.

But ACB said the five-month extension for compliance with section 404(a), management’s assessment report, will be inadequate for non-accelerated filers to learn and have sufficient experience with guidance of the SEC, the Committee of Sponsoring Organizations of the Treadway Commission, the Public Company Accounting Oversight Board and the PCAOB amendments to Auditing Standard No. 2. The previous compliance deadline of fiscal years ending on or after July 15, 2007, would be extended to fiscal years on or after Dec. 15, 2007.

In both cases, ACB said the implementation deadlines should be extended by 17 months with the caveat that if more time is needed to comply, the SEC would consider further extensions.

ACB said it supports the proposed transition period for newly public companies and other companies that are required to register securities and reports for the first time, but that an extended compliance date should be the same as that for non-accelerated filers.

Click here to read the comment letter.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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