SEC Considers Ending Quarterly Reports

SEC Proposes Semiannual Earnings Reporting for Public Companies

• The US SEC is considering a proposal to allow public companies to report earnings semiannually instead of quarterly.
• The proposal, potentially released next month, would make quarterly disclosures optional.
• A public comment period of at least 30 days will precede any formal adoption of the rule.
• Supporters argue this change could reduce short-term pressures and compliance costs for companies.
• Critics warn that less frequent reporting might reduce transparency and delay crucial financial information.
• The EU and UK have already eliminated mandatory quarterly reporting, with many firms continuing voluntary updates.

The SEC’s proposed shift to semiannual earnings reports aims to reduce compliance burdens but raises concerns about transparency. The plan reflects similar moves by the European Union and United Kingdom in recent years.