According to the WSJ, the SEC is working on a proposal that would allow publicly traded companies to report their earnings twice a year instead of quarterly.
Discussion of making the quarterly requirement, which has been in place for more than 50 years, optional has been gaining momentum over the past year as companies lament the cost and burden of preparing quarterly profits. This requirement is also believed to be one of the reasons why some companies choose to go private for longer periods.
Supporters of the change hope the semiannual requirement will make it easier for companies to maintain their public status and encourage more companies to go public. SEC Chairman Paul Atkins and President Trump have both expressed support for the idea. The Journal reports that the SEC has already begun discussions with exchanges about potential next steps, but any changes are still a long way off.
If the SEC releases a proposal, which could come in the coming weeks, there will be a public comment period followed by a vote. The Journal points out that there is precedent for this rule. Although both the European Union and the United Kingdom abolished mandatory quarterly reporting in favor of semi-annual disclosures about a decade ago, many companies in both markets still report quarterly by choice.
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