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Title 15 — Commerce and TradeRelease 119-73

§7218 Accounting standards

Title 15 › Chapter CHAPTER 98— - PUBLIC COMPANY ACCOUNTING REFORM AND CORPORATE RESPONSIBILITY › Subchapter SUBCHAPTER I— - PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD › § 7218

Last updated Apr 6, 2026|Official source

Summary

The Commission must create rules and regulations needed to carry out section 77s(b). It must do this when it is needed for the public interest or to protect investors. The Act does not stop the Commission from setting accounting principles or standards when enforcing the securities laws. The Commission must also study whether the United States should adopt a principles-based accounting system. The study must look at how much of such accounting already exists, how long a change would take, how it could be done, and a full economic analysis. The Commission must send a report on the study to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services no later than one year after July 30, 2002.

Full Legal Text

Title 15, §7218

Commerce and Trade — Source: USLM XML via OLRC

(a)
(b)The Commission shall promulgate such rules and regulations to carry out section 77s(b) of this title as it deems necessary or appropriate in the public interest or for the protection of investors.
(c)Nothing in this Act, including this section and the amendment made by this section, shall be construed to impair or limit the authority of the Commission to establish accounting principles or standards for purposes of enforcement of the securities laws.
(d)(1)(A)The Commission shall conduct a study on the adoption by the United States financial reporting system of a principles-based accounting system.
(B)The study required by subparagraph (A) shall include an examination of—
(i)the extent to which principles-based accounting and financial reporting exists in the United States;
(ii)the length of time required for change from a rules-based to a principles-based financial reporting system;
(iii)the feasibility of and proposed methods by which a principles-based system may be implemented; and
(iv)a thorough economic analysis of the implementation of a principles-based system.
(2)Not later than 1 year after July 30, 2002, the Commission shall submit a report on the results of the study required by paragraph (1) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This Act, referred to in subsec. (c), is Pub. L. 107–204, July 30, 2002, 116 Stat. 745, known as the Sarbanes-Oxley Act of 2002. For complete classification of this Act to the Code, see Tables. Codification Section is comprised of section 108 of Pub. L. 107–204. Subsec. (a) of section 108 of Pub. L. 107–204 amended section 77s of this title.

Reference

Citations & Metadata

Citation

15 U.S.C. § 7218

Title 15 — Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73