US EditionSEC Prepares Proposal to Eliminate Quarterly Reporting Requirement: WSJ
The SEC aims to reduce reporting burdens by allowing semiannual earnings, with Nasdaq finding 75% of surveyed companies favored this shift in 2019.
- The Wall Street Journal reported Monday that the U.S. Securities and Exchange Commission is preparing a proposal to let public companies report earnings twice a year, subject to public comment and a vote.
- In the past year, companies have argued that quarterly reporting creates significant costs and burdens, with Nasdaq's 2019 survey showing about 852.95 hours spent quarterly and some costs reaching $7 million.
- The CFA Institute found 82% of investors would 'struggle to locate information' if reporting is reduced, Matthew Brusch, president and CEO of NIRI, warned 'Investors won't simply just stop asking for the information', while LinkedIn and Ravenpack responses suggest alternative-data providers could benefit.
- Proponents say semiannual reporting could encourage more prospective public companies and give CEOs and CFOs more time, while hedge funds and traders may face fewer trading catalysts, Goldberg said.
- The initial 2019 effort stalled, and other regions with twice-a-year rules still see many firms report quarterly, while changing the rule could ripple through the earnings ecosystem supporting thousands of jobs for corporate lawyers and auditors.
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21 Articles
How a quarterly earnings shake-up could disrupt a sprawling white-collar ecosystem
Workers in downtown ManhattanMomo Takahashi/BIThe SEC could soon reduce the number of times companies have to report earnings.Companies have complained that quarterly reports are costly and time-consuming.Here's how fewer reports could affect white-collar jobs across legal, accounting, and communications.A shake-up could finally be coming for quarterly earnings, and could rattle an ecosystem full of white-collar workers plying their trade as law…
Is there an end to the often extreme focus of listed companies, shareholders, and analysts on the next quarterly earnings results? According to The…
SEC preparing to scrap quarterly earnings requirement — a move Trump supports: report
The Securities and Exchange Commission is preparing a proposal to scrap the requirement for companies to report their earnings every quarter and giving them the option to share results twice a year, the Wall Street Journal reported Monday.
According to a newspaper report, the SEC is considering abolishing the requirement for quarterly reports, and a proposal could be submitted next month.
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