SEC proposed eliminating quarterly reporting requirement for public companies

Wall Street Journal via MSN: “Instead of three quarterly reports and one annual report for each fiscal year, companies would be able to choose to file one semiannual report and one annual report. The purpose? To let companies choose the reporting frequency that is best for them and their investors, the SEC said. Some investors could take issue with the changes because they rely on regular disclosures. The proposal is subject to a public comment period of 60 days, after which the regulator will vote on it…The push to allow for semiannual reporting has been gaining momentum lately. The Wall Street Journal reported in September that the Long-Term Stock Exchange petitioned the SEC to eliminate the quarterly earnings report requirement, and within days, President Trump and Atkins both said they supported the idea. Some believe the proposal, if adopted, could help with the declining number of public companies in the U.S., given some companies say they remain private to avoid the time-consuming and costly clerical work required to list and maintain publicly traded shares…However, some investors could take issue with the changes, given they rely on the transparency of regular disclosures…”