WASHINGTON, Nov. 17 (UPI) -- The U.S. Federal Deposit Insurance Corp. said Wednesday non-public insured banks will not have to follow new accounting procedures.
The accounting procedures take effect under the Sarbanes-Oxley Act.
The government agency said insured banks not publicly listed need only follow existing internal control standards set by the American Institute of Certified Public Accountants, as required under existing FDIC regulation.
For publicly listed banks considered "non-accelerated filers" by the Securities and Exchange Commission, the FDIC said those banks' independent auditors can continue filing under FDIC regulations until SEC regulations for non-accelerated filers take effect, which will be during fiscal years ending after July 14, 2005.
The SEC regulations and other accounting standards under Sarbanes-Oxley have more extensive testing and documentation requirements for financial reporting than those under FDIC rules, the letter to banks says. However, the FDIC said banks should note that the AICPA is considering revising its rules in light of the Sarbanes-Oxley rules.
The FDIC accounting regulations cited apply to banks with $500 million or more in total assets.
