The SEC is working on a proposal that would allow public companies to publish earnings reports twice a year instead of quarterly. For the WSJ.
Talk of making the over-50 quarterly requirement optional has grown stronger in the past year as companies complain about the cost and burden of preparing for quarterly earnings. Demand is thought to be one reason why some companies are choosing to stay private longer.
Proponents of the change hope the semiannual requirement will encourage more companies to go public by making it easier to maintain public company status. SEC Chairman Paul Atkins and President Trump have expressed support for the idea. The Journal reports that the SEC has already begun discussions with exchanges about potential next steps, though any changes are still a long way off.
If the SEC unveils its proposal, which could come in the next few weeks, it will be subject to a public comment period and then a vote. The Journal notes that there is precedent for this rule. Both the European Union and the United Kingdom abolished mandatory quarterly reporting in favor of half-yearly disclosures about a decade ago, although many companies in both markets still report quarterly by choice.
