No more quarterly reports? SEC proposes major rule change
The plan would let companies file one semiannual report and one annual report, with the SEC estimating nearly $200,000 in yearly savings per firm.
- On Tuesday, the Securities and Exchange Commission released a proposal allowing public companies to elect optional semiannual reporting via a new Form 10-S instead of quarterly Form 10-Q filings.
- SEC Chairman Paul Atkins described the proposal as part of his "Make IPOs Great Again" agenda, aiming to end a 55-year-old mandatory quarterly reporting requirement that has constrained corporate flexibility.
- The agency stated that switching to Form 10-S could provide a net reduction in compliance costs of $198,000 annually, while the new form requires the same narrative disclosures and financial information as Form 10-Q but covers a six-month period.
- Gary Kaltbaum, president of Kaltbaum Capital Management, warned the change could reduce investor clarity, stating "that's tough going for investors," while CNBC host Jim Cramer called judging CEOs quarterly "brutal."
- A public comment period is open for 60 days following the May 5 publication; notably, the UK, Australia, Japan, and other nations currently operate without mandatory quarterly reporting requirements.
23 Articles
23 Articles
SEC Proposes Allowing Companies to Submit Semiannual Reports
The Securities and Exchange Commission (SEC) has proposed new regulations that would allow public companies to file semiannual reports, rather than the traditionally required quarterly reports. Currently, public companies have to file quarterly reports via Form 10-Q to meet their interim reporting obligations under federal securities laws. Under the proposal, companies can choose to file these reports semi-annually on the new Form 10-S, the SEC …
SEC Proposes Allowing Firms To Switch From Quarterly To Half-Yearly Earnings Reports—Here's What To Know
The U.S. Securities and Exchange Commission (SEC) proposed a major change in the reporting frequency of public companies on Tuesday. The SEC’s proposal puts an end to a 55-year-old mandatory requirement for U.S. public companies to share detailed financial results four times a year. Instead, companies could opt to file semiannual reports on a new Form 10-S, replacing the current quarterly reports on Form 10-Q. If adopted, this change in reportin…
President Donald Trump believes that companies should not be forced to report on their business after each quarter. US stock exchange supervisors want to loosen the rules.
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