Requirement (SOX)
Section 108: Accounting Standards.
Requirements SOX
Description
Description
The SEC is authorized to "recognize, as 'generally accepted'... any accounting principles" that are established by a standard-setting body that meets the bill's criteria, which include requirements that the body:
1. be a private entity;
2. be governed by a board of trustees (or equivalent body), the majority of whom are not or have not been associated persons with a public accounting firm for the past 2 years;
3. be funded in a manner similar to the Board;
4. have adopted procedures to ensure prompt consideration of changes to accounting principles by a majority vote; and
5. consider, when adopting standards, the need to keep them current and the extent to which international convergence of standards is necessary or appropriate