Notice2026-04725
Order Regarding Review of FASB Accounting Support Fee for 2026 Under Section 109 of the Sarbanes-Oxley Act of 2002
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 11, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 47 (Wednesday, March 11, 2026)</title>
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[Federal Register Volume 91, Number 47 (Wednesday, March 11, 2026)]
[Notices]
[Page 12035]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04725]
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SECURITIES AND EXCHANGE COMMISSION
[SECURITIES ACT OF 1933 Release No. 11410/March 6, 2026; SECURITIES
EXCHANGE ACT OF 1934 Release No. 104943/March 6, 2026]
Order Regarding Review of FASB Accounting Support Fee for 2026
Under Section 109 of the Sarbanes-Oxley Act of 2002
The Sarbanes-Oxley Act of 2002 (``SOX'' or the ``Act'') provides
that the Securities and Exchange Commission (the ``Commission'') may
recognize, as generally accepted for purposes of the securities laws,
any accounting principles established by a standard-setting body that
meets certain criteria.\1\ Section 109 of SOX provides that all of the
budget of such a standard-setting body 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) of the Act, the amount of fees
collected for a fiscal year shall not exceed the ``recoverable budget
expenses'' of the standard-setting body. Section 109(i) of SOX 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.
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\1\ See 15 U.S.C. 7201 et seq.
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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.\2\
Accordingly, the Commission undertook a review of the FASB's accounting
support fee for calendar year 2026.\3\ In connection with its review,
the Commission also reviewed the budget for the FAF and the FASB for
calendar year 2026.
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\2\ See Commission Statement of Policy Reaffirming the Status of
the FASB as a Designated Private-Sector Standard Setter, Release No.
33-8221 (Apr. 25, 2003) [68 FR 23333 (May 1, 2003)].
\3\ The Financial Accounting Foundation's Board of Trustees
approved the FASB's budget on Nov. 18, 2025. The FAF submitted the
approved budget to the Commission on Nov. 19, 2025.
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Section 109 of SOX provides that, in addition to the accounting
support fee, 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, in the judgment of the Commission, 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 Governmental Accounting Standards Board (``GASB''),
the FASB's sister organization, which sets accounting standards used by
state and local government entities. The Commission has been advised by
the FAF that neither the FAF, the FASB, nor the GASB accept
contributions from the accounting profession.
The Commission understands that the Office of Management and Budget
(``OMB'') has determined the FASB's spending of the 2026 accounting
support fee is sequestrable under the Budget Control Act of 2011.\4\ So
long as sequestration is applicable, we anticipate that the FAF will
work with the Commission and Commission staff as appropriate regarding
its implementation of sequestration.
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\4\ See OMB Report to the Congress on the BBEDCA 251A
Sequestration for Fiscal Year 2026 (May 30, 2025), available at
<a href="https://www.whitehouse.gov/wp-content/uploads/2025/04/OMB-Report-to-the-Congress-on-the-BBEDCA-251A-Sequestration-for-Fiscal-Year-2026.pdf">https://www.whitehouse.gov/wp-content/uploads/2025/04/OMB-Report-to-the-Congress-on-the-BBEDCA-251A-Sequestration-for-Fiscal-Year-2026.pdf</a>.
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After its review, the Commission determined that the 2026 annual
accounting support fee for the FASB is consistent with Section 109 of
the Act. Accordingly,
It is ordered, pursuant to Section 109 of SOX, that the FASB may
act in accordance with this determination of the Commission.
By the Commission.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-04725 Filed 3-10-26; 8:45 am]
BILLING CODE 8011-01-P
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