SEC considers shift from quarterly to semiannual earnings reports
The SEC is preparing a proposal to permit public companies to report earnings semiannually rather than quarterly, according to the WSJ.
The change would overhaul a disclosure requirement that has stood for more than 50 years. Proponents argue the shift could reduce regulatory burdens and encourage more private firms to pursue initial public offerings.
Companies have cited costs and administrative strain as drawbacks of the current quarterly regime. The requirement has also been identified as a factor in prolonged private status for some firms.
SEC Chairman Paul Atkins and President Trump have both expressed support for the semiannual option, the WSJ reported. The SEC has initiated discussions with exchanges regarding implementation steps.
The proposal could emerge within weeks. It would then face a public comment period and commission vote before adoption. The European Union and the U.K. eliminated mandatory quarterly reporting roughly a decade ago, though many companies in both jurisdictions continue to issue quarterly reports voluntarily.