Order Approving Public Company Accounting Oversight Board Budget and Annual Accounting Support Fee for Calendar Year 2006, 20143 [E6-5796]
Download as PDF
<![CDATA[
Federal Register / Vol. 71, No. 75 / Wednesday, April 19, 2006 / Notices
Dated: April 12, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. E6–5797 Filed 4–18–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Securities Act of 1933 Release No. 8676]
[Securities Exchange Act of 1934 Release
No. 53641]
Order Approving Public Company
Accounting Oversight Board Budget
and Annual Accounting Support Fee
for Calendar Year 2006
cchase on PROD1PC60 with NOTICES
April 13, 2006.
The Sarbanes-Oxley Act of 2002 (the
‘‘Act’’) established the Public Company
Accounting Oversight Board (‘‘PCAOB’’)
to oversee the audits of public
companies and related matters, to
protect investors, and to further the
public interest in the preparation of
informative, accurate and independent
audit reports. The PCAOB is to
accomplish these goals through
registration of public accounting firms
and standard setting, inspection, and
disciplinary programs. Section 109 of
the Act provides that the PCAOB shall
establish a reasonable annual
accounting support fee, as may be
necessary or appropriate to establish
and maintain the PCAOB. Section
109(h) amends Section 13(b)(2) of the
Securities Exchange Act of 1934 to
require issuers to pay the allocable share
of a reasonable annual accounting
support fee or fees, determined in
accordance with Section 109 of the Act.
Under Section 109(f), the aggregate
annual accounting support fee shall not
exceed the PCAOB’s aggregate
‘‘recoverable budget expenses,’’ which
may include operating, capital and
accrued items. Section 109(b) of the Act
directs the PCAOB to establish a budget
for each fiscal year in accordance with
the PCAOB’s internal procedures,
subject to approval by the Securities and
Exchange Commission (the
‘‘Commission’’).
The PCAOB adopted a budget for
calendar year 2006 on November 22,
2005 and submitted it to the
Commission for approval on January 24,
2006. In accordance with its
responsibilities to oversee the PCAOB,
the Commission reviewed the budget
proposed by the PCAOB for 2006 and its
aggregate accounting support fee for
2006, which will fund the PCAOB’s
expenditures.
In an effort to address any issues
relating to the PCAOB’s proposed
VerDate Aug<31>2005
17:09 Apr 18, 2006
Jkt 208001
budget for 2006 before it was approved
by the PCAOB and submitted to the
Commission for review and approval,
the Commission’s review of the
PCAOB’s proposed budget for 2006
began in August 2005 with a meeting
between Commission and PCAOB staffs
to discuss the types of supporting
information the Commission would
need to begin its review of the PCAOB’s
2006 budget, including questions to be
addressed by the PCAOB regarding its
proposed budget and accounting
support fee. Also, prior to the PCAOB’s
final consideration of its 2006 budget
estimates and approval of its proposed
budget for 2006, the PCAOB board
members met, either in person or by
phone, with each Commissioner to
discuss the PCAOB’s development of a
strategic plan and other matters
impacting the PCAOB’s budget. In
December, shortly after the PCAOB
approved its proposed budget for 2006,
the PCAOB briefed the Commission staff
on its inspection program for 2005 and
its plans for 2006 and provided
responses to the staff’s questions
regarding its inspection program.
Over the course of the Commission’s
review, staff from the Commission’s
Offices of the Chief Accountant,
Executive Director and Information
Technology dedicated a substantial
amount of time to the review and
analysis of the PCAOB’s programs,
projects and budget estimates, and
attended several meetings with board
members, management and staff of the
PCAOB to develop an understanding of
the PCAOB’s budget and operations.
During the course of the Commission’s
review, the Commission staff relied
upon representations and supporting
documentation from the PCAOB.
After considering the above, the
Commission did not identify any
proposed disbursements in the budget
that are not properly recoverable
through the annual accounting support
fee, and the Commission believes that
the aggregate proposed 2006 annual
accounting support fee does not exceed
the PCAOB’s aggregate recoverable
budget expenses for 2006.
Based on the foregoing, the
Commission has determined that the
PCAOB’s 2006 budget and annual
accounting support fee are consistent
with Section 109 of the Act.
Accordingly,
It is ordered, pursuant to Section 109
of the Act, that the PCAOB budget and
annual accounting support fee for
calendar year 2006 are approved.
PO 00000
Frm 00077
Fmt 4703
Sfmt 4703
20143
By the Commission.
Nancy M. Morris,
Secretary.
[FR Doc. E6–5796 Filed 4–18–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Securities Act of 1933 Release No. 8677]
[Securities Exchange Act of 1934 Release
No. 53642]
Order Regarding Review of Financial
Accounting Standards Board
Accounting Support Fee for 2006
Under Section 109 of The SarbanesOxley Act of 2002
April 13, 2006.
The Sarbanes-Oxley Act of 2002 (the
‘‘Act’’) establishes criteria that must be
met in order for the accounting
standards established by an accounting
standard-setting body to be recognized
as ‘‘generally accepted’’ for purposes of
the federal securities laws. Section 109
of the Act provides that all of the budget
of an accounting standard-setting body
satisfying these criteria shall be payable
from an annual accounting support fee
assessed and collected against each
issuer, as may be necessary or
appropriate to pay for the budget and
provide for the expenses of the standard
setting body, and to provide for an
independent, stable source of funding,
subject to review by the Securities and
Exchange Commission (the
‘‘Commission’’). Under Section 109(f),
the annual accounting support fee shall
not exceed the amount of the standard
setter’s ‘‘recoverable budget expenses.’’
Section 109(h) amends Section 13(b)(2)
of the Securities Exchange Act of 1934
to require issuers to pay the allocable
share of a reasonable annual accounting
support fee or fees, determined in
accordance with Section 109 of the Act.
On April 25, 2003, the Commission
issued a policy statement concluding
that the Financial Accounting Standards
Board (‘‘FASB’’) and its parent
organization, the Financial Accounting
Foundation (‘‘FAF’’), satisfied the
criteria for an accounting standardsetting body under the Act, and
recognizing the FASB’s financial
accounting and reporting standards as
‘‘generally accepted’’ under Section 108
of the Act.1 As a consequence of that
recognition, the Commission undertook
a review of the FASB’s accounting
support fee for calendar year 2006. In
connection with its review, the
Commission also reviewed the proposed
1 Financial
E:\FR\FM\19APN1.SGM
Reporting Release No. 70.
19APN1
]]>Agencies
[Federal Register Volume 71, Number 75 (Wednesday, April 19, 2006)]
[Notices]
[Page 20143]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-5796]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Securities Act of 1933 Release No. 8676]
[Securities Exchange Act of 1934 Release No. 53641]
Order Approving Public Company Accounting Oversight Board Budget
and Annual Accounting Support Fee for Calendar Year 2006
April 13, 2006.
The Sarbanes-Oxley Act of 2002 (the ``Act'') established the Public
Company Accounting Oversight Board (``PCAOB'') to oversee the audits of
public companies and related matters, to protect investors, and to
further the public interest in the preparation of informative, accurate
and independent audit reports. The PCAOB is to accomplish these goals
through registration of public accounting firms and standard setting,
inspection, and disciplinary programs. Section 109 of the Act provides
that the PCAOB shall establish a reasonable annual accounting support
fee, as may be necessary or appropriate to establish and maintain the
PCAOB. Section 109(h) amends Section 13(b)(2) of the Securities
Exchange Act of 1934 to require issuers to pay the allocable share of a
reasonable annual accounting support fee or fees, determined in
accordance with Section 109 of the Act. Under Section 109(f), the
aggregate annual accounting support fee shall not exceed the PCAOB's
aggregate ``recoverable budget expenses,'' which may include operating,
capital and accrued items. Section 109(b) of the Act directs the PCAOB
to establish a budget for each fiscal year in accordance with the
PCAOB's internal procedures, subject to approval by the Securities and
Exchange Commission (the ``Commission'').
The PCAOB adopted a budget for calendar year 2006 on November 22,
2005 and submitted it to the Commission for approval on January 24,
2006. In accordance with its responsibilities to oversee the PCAOB, the
Commission reviewed the budget proposed by the PCAOB for 2006 and its
aggregate accounting support fee for 2006, which will fund the PCAOB's
expenditures.
In an effort to address any issues relating to the PCAOB's proposed
budget for 2006 before it was approved by the PCAOB and submitted to
the Commission for review and approval, the Commission's review of the
PCAOB's proposed budget for 2006 began in August 2005 with a meeting
between Commission and PCAOB staffs to discuss the types of supporting
information the Commission would need to begin its review of the
PCAOB's 2006 budget, including questions to be addressed by the PCAOB
regarding its proposed budget and accounting support fee. Also, prior
to the PCAOB's final consideration of its 2006 budget estimates and
approval of its proposed budget for 2006, the PCAOB board members met,
either in person or by phone, with each Commissioner to discuss the
PCAOB's development of a strategic plan and other matters impacting the
PCAOB's budget. In December, shortly after the PCAOB approved its
proposed budget for 2006, the PCAOB briefed the Commission staff on its
inspection program for 2005 and its plans for 2006 and provided
responses to the staff's questions regarding its inspection program.
Over the course of the Commission's review, staff from the
Commission's Offices of the Chief Accountant, Executive Director and
Information Technology dedicated a substantial amount of time to the
review and analysis of the PCAOB's programs, projects and budget
estimates, and attended several meetings with board members, management
and staff of the PCAOB to develop an understanding of the PCAOB's
budget and operations. During the course of the Commission's review,
the Commission staff relied upon representations and supporting
documentation from the PCAOB.
After considering the above, the Commission did not identify any
proposed disbursements in the budget that are not properly recoverable
through the annual accounting support fee, and the Commission believes
that the aggregate proposed 2006 annual accounting support fee does not
exceed the PCAOB's aggregate recoverable budget expenses for 2006.
Based on the foregoing, the Commission has determined that the
PCAOB's 2006 budget and annual accounting support fee are consistent
with Section 109 of the Act. Accordingly,
It is ordered, pursuant to Section 109 of the Act, that the PCAOB
budget and annual accounting support fee for calendar year 2006 are
approved.
By the Commission.
Nancy M. Morris,
Secretary.
[FR Doc. E6-5796 Filed 4-18-06; 8:45 am]
BILLING CODE 8010-01-P
