"Chatter about making the 50-plus-year-old quarterly requirement optional has picked up steam in the past year, as companies lament the cost and burden of preparing for quarterly earnings. The requirement is also thought to be one reason why some companies choose to stay private longer."
"Those in favor of change hope that a semiannual requirement will encourage more companies to go public by making it easier to maintain public company status. SEC Chairman Paul Atkins and President Trump have both voiced support for the idea."
"Both the European Union and the U.K. eliminated mandatory quarterly reporting roughly a decade ago in favor of semiannual disclosures, though many companies in both markets still report quarterly by choice."
The SEC is considering a proposal to make quarterly earnings reporting optional for public companies, allowing them to report semiannually instead. This change responds to company concerns about the substantial costs and administrative burden of quarterly reporting cycles. The modification could incentivize more companies to pursue public status by reducing ongoing compliance requirements. SEC Chairman Paul Atkins and President Trump support this initiative. The SEC has begun preliminary discussions with exchanges about implementation. A formal proposal could arrive within weeks, followed by a public comment period and vote. The EU and UK implemented similar changes approximately a decade ago, with many companies voluntarily maintaining quarterly reporting despite no longer being required.
Read at TechCrunch
Unable to calculate read time
Collection
[
|
...
]