Tuesday, February 15, 2005
Companies Changing Fiscal Year End To Buy 404 Time
In an effort to buy more time under Section 404 of Sarbanes-Oxley, Chordiant Software, Inc. recently announced that its board had voted to change the end of its fiscal year from Dec. 31 to Sept. 30, beginning with FY 2004.
The move means that Chordiant will not have to comply with the Securities and Exchange Commission's disclosure rules relating to internal control over financial reporting until Dec. 15, 2005, seven and one-half months later than compliance would have been mandated if the company stuck to the Dec. 31 year-end date; accelerated filers must comply with Section 404 for their first fiscal year ending on or after Nov. 15, 2004.
Chordiant, which is based in Cupertino, Calif., is not alone in tweaking its fiscal year as a way of stalling Section 404?s impact. A review of SEC filings indicates that at least three additional companies recently moved their fiscal year-end from Dec. 31 to Sept. 30.
One of those companies, GoRemote Internet Communications of Milpitas, Calif., informed the SEC in October 2004 that it was changing the end of its fiscal year to Sept. 30. In doing so, the company cited four reasons for the change, including improving its "ability to obtain and schedule external audit and audit-related support required to ensure ongoing compliance with regulatory requirements."
posted by Brian Moran @ 8:51 AM