"US companies could choose to report earnings semiannually instead of quarterly under a proposal released by the Securities and Exchange Commission, potentially reducing how much information publicly traded firms must share with investors.

The SEC has mandated quarterly reports, known as 10-Qs, for more than half a century in a bid to provide more transparency. While this proposal would drop that requirement for publicly traded companies, firms might choose to continue issuing earnings releases and performance outlooks every three months.

“Today’s proposed amendments, if ultimately adopted, would provide companies with increased regulatory flexibility,” said SEC Chairman Paul Atkins in a statement.

Atkins had vowed to fast-track the semiannual disclosure plan after President Donald Trump called to end mandatory quarterly reporting. Historically, agency rulemaking can take around 18 months to two years to complete.

Under the proposal, companies that elect to file semiannual reports would file one such report and one annual report for each fiscal year in lieu of three quarterly reports and one annual report. An agency official said nothing in the proposed changes would disrupt companies’ ability to continue quarterly earnings calls and guidance..."

 

This article was originally published in Bloomberg Law.