Companies could ditch quarterly earnings for semiannual reports under new SEC plan [View all]
Source: msn/Barron's
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The Securities and Exchange Commission on Tuesday proposed a new rule that would let companies ditch quarterly reports in favor of filing earnings only twice a year. SEC Chairman Paul Atkins and President Donald Trump had said for months that such a move was coming, describing it as a way for companies to save money and focus on their long-term trajectory.
It might take a while before investors see a meaningful shift away from quarterly reports. First, it will still take a few months for the rulemaking process to play out. The SEC said it would officially publish the proposal in the Federal Register in the next few days, after which the public can comment on the rule for 60 days. Then the SEC will consider the comments and publish a final rule.
Assuming nothing changes, companies’ first chance to switch to semiannual reporting will come the next time they file an annual report. By checking a box in the report, companies will be able to commit to filing only semi-annually for the rest of the fiscal year. They will not be able to change reporting cadence during the fiscal year.
It’s also unclear how many companies will opt to change to the new regime, and some investor groups have already signaled they’re uneasy with the proposal.
Read more: https://www.msn.com/en-us/money/economy/companies-could-ditch-quarterly-earnings-for-semiannual-reports-under-new-sec-plan/ar-AA22snd1
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