US Code

Public Law 119-73 (01/23/2026)

15 U.S.C. § 7218

Accounting standards

(a)

Omitted

(b)

Commission authority

section 77s(b) of this titleThe Commission shall promulgate such rules and regulations to carry out as it deems necessary or appropriate in the public interest or for the protection of investors.

(c)

No effect on Commission powers

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)

Study and report on adopting principles-based accounting

(1)

Study

(A)

In general

The Commission shall conduct a study on the adoption by the United States financial reporting system of a principles-based accounting system.

(B)

Study topics

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)

Report

Not later than 1 year after , 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.

Pub. L. 107–204, title I, § 108116 Stat. 768(, , .)

Editorial Notes

References in Text

Pub. L. 107–204116 Stat. 745This Act, referred to in subsec. (c), is , , , known as the Sarbanes-Oxley Act of 2002. For complete classification of this Act to the Code, see Tables.

Codification

section 108 of Pub. L. 107–204section 108 of Pub. L. 107–204section 77s of this titleSection is comprised of . Subsec. (a) of amended .