---
kind: "section"
citation: "15 U.S.C. § 7218"
title: "15"
title_heading: "Commerce and Trade"
number: "7218"
heading: "Accounting standards"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/7218"
units:
  - "Chapter 98 — Public Company Accounting Reform and Corporate Responsibility"
  - "Subchapter I — Public Company Accounting Oversight Board"
---

# §7218. Accounting standards

- (a) **Omitted—**
- (b) **Commission authority—** The [Commission](/usc/15/7201.md?p=6) shall promulgate such rules and regulations to carry out [section 77s(b) of this title](/usc/15/77s.md?p=b) 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](/usc/15/7201.md?p=6) to establish accounting principles or standards for purposes of enforcement of the [securities laws](/usc/15/7201.md?p=15).
- (d) **Study and report on adopting principles-based accounting—**
  - (1) **Study—**
    - (A) **In general—** The [Commission](/usc/15/7201.md?p=6) 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)](#d-1-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 July 30, 2002, the [Commission](/usc/15/7201.md?p=6) shall submit a report on the results of the study required by [paragraph (1)](#d-1) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.

## Source credit

(Pub. L. 107–204, title I, § 108, July 30, 2002, 116 Stat. 768.)

## Notes

### 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.