MarketWatch and other outlets reported that the Securities and Exchange Commission said in a statement on May 5 (local time) that it is proposing amendments to rules and forms so listed companies can choose semiannual reports in place of quarterly filings.
Under current rules, U.S.-listed companies must file three quarterly reports and one annual report each fiscal year. If adopted, the proposal would let companies choose to file one semiannual report and one annual report instead of quarterly reports.
Companies that choose semiannual reporting would file a new form, Form 10-S. The deadline would be set at 40 or 45 days after the end of the first half of the fiscal year, depending on the company’s filing status.
The SEC said the changes are intended to give companies and investors flexibility to choose the reporting cycle that best fits their needs. It also said it plans to revise Regulation S-X, which sets financial statement requirements for periodic reports, registration statements and proxy disclosures, to reflect the new semiannual option and simplify existing requirements.
SEC Chairman Paul Atkins said in the statement, “The rigidity of SEC rules has limited companies and investors from deciding for themselves which interim reporting cycle is most appropriate,” adding that if the proposal is finalized it would provide greater regulatory flexibility.
The proposal will go through a 60-day public comment period after it is published in the Federal Register, and then be put to a vote by the SEC.
President Donald Trump said in September last year that companies should not be forced to report quarterly and should report results semiannually. The Wall Street Journal reported in March that the SEC was preparing a related proposal.
Some investors have raised concerns that fewer earnings reports could reduce corporate transparency and credibility.
The Investment Company Institute said in a statement on May 5 that it is important to strike a balance between reducing unnecessary compliance burdens and maintaining the quality of the disclosure system that supports investor confidence.
* This article has been translated by AI.
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