[Federal Register Volume 68, Number 152 (Thursday, August 7, 2003)]
[Notices]
[Page 47110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-20133]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Securities Act of 1933 Release No. 8263/August 1, 2003 and Securities 
Exchange Act of 1934 Release No. 48277/August 1, 2003]


Order Regarding Review of FASB Accounting Support Fee Under 
Section 109 of the Sarbanes-Oxley Act of 2002

    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 
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 standard-setting 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 proposed accounting support fee for calendar year 2003. In 
connection with its review, the Commission also reviewed the proposed 
budget for the FAF and the FASB for calendar year 2003.
---------------------------------------------------------------------------

    \1\ Financial Reporting Release No. 70.
---------------------------------------------------------------------------

    Section 109 of the Act also provides that the standard setting body 
can have additional sources of revenue for its activities, such as 
earnings from sales of publications, provided that each additional 
source of revenue shall not jeopardize the actual or perceived 
independence of the standard setter. In this regard, the Commission 
also considered the interrelation of the operating budgets of the FAF, 
the FASB and the Government Accounting Standards Board (``GASB''), the 
FASB's sister organization, which sets accounting standards to be used 
by state and local government entities. The Commission has been advised 
by the FAF that neither the FAF, the FASB nor the GASB will accept 
contributions from the accounting profession.
    After its review, the Commission determined that the 2003 annual 
accounting support fee for the FASB is consistent with section 109 of 
the Act. Accordingly,
    It is ordered that the FASB may act in accordance with this 
determination of the Commission.

    By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-20133 Filed 8-6-03; 8:45 am]
BILLING CODE 8010-01-P