Section 404 requires a company to include in its annual reports a report by management on the company's internal control over financial reporting and an accompanying auditor's report. Under the latest extension, foreign private issuers filing annual reports on Form 20-F or 40-F, as well as non-accelerated filers, must begin to comply with the internal control requirements in their first financial year ending on or after 15 July 2006. This is a one-year extension from the previously established 15 July 2005 date. The SEC noted that one reason for the deferral for foreign issuers is that "many foreign companies are facing regulatory and reporting challenges in addition to internal control reporting as companies incorporated in a European Union member country are required to prepare their financial statements for 2005 in accordance with new International Financial Reporting Standards." Click for:

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