Accountancy Slice

North America

President Donald Trump has said that companies should no longer be required to report their earnings on a quarterly basis, and instead publish their financials every six months, arguing that it "will save money, and allow managers to focus on properly running their companies." Currently, the SEC requires corporations to report their financial statements every 90 days. Half-yearly reporting would mark a huge change in disclosure requirements and put the U.S. in line with the U.K. and several countries in the European Union. Supporters of the change say quarterly reporting is too costly and time-consuming and discourages companies from wanting to go public. They also say company executives focus too much on hitting quarterly earnings targets and not enough on long-term planning. Opponents, however, say that six-month reviews would deprive investors of important financial information. An SEC spokesperson said that the commission "is prioritizing this proposal to further eliminate unnecessary regulatory burdens on companies." TD Cowen analyst Jaret Seiberg said it could take the SEC six months to develop a proposal based on economic data. "Key indicators of the issue gaining momentum will be if [SEC chair Paul] Atkins discusses the issue in his public speeches in the coming months and if it ends up on the agenda for the SEC's Investor Advisory Committee," he added.