The U.S. Securities and Exchange Commission (SEC) is developing a proposal to permit public companies to issue earnings reports semiannually rather than quarterly.
This potential alteration to the over 50-year-old quarterly reporting mandate could decrease the regulatory burden on public companies and encourage more firms to enter public markets, according to the Wall Street Journal.
Companies have cited the cost and burden associated with preparing quarterly financial disclosures. Some believe the current requirement disincentivizes companies from going public.
SEC Chairman Paul Atkins and former President Trump have previously supported semiannual reporting. The SEC has initiated discussions with exchanges regarding the implementation of such a change, the Journal reported.
Following its release, the proposal will undergo a public comment period and then a vote.
The European Union and the United Kingdom eliminated mandatory quarterly reporting approximately a decade ago, moving to semiannual disclosures. Many companies in these markets still report quarterly voluntarily.
