CFO Slice

Most U.S. public companies would continue providing investors with quarterly financial updates even if the SEC allows them to make formal regulatory filings only twice a year, according to a KPMG survey of 156 finance executives. Thirty-nine percent of respondents said they would issue quarterly earnings releases while switching to semiannual regulatory filings, while another 39% would retain their existing quarterly 10-Q filings and earnings releases. Just 3% would move entirely to semiannual reporting, while 7% would provide selected interim financial data. Although supporters argue that less frequent filings could reduce costs and administrative work, many companies question the potential savings, with more than half of those surveyed bound by financing agreements requiring quarterly information and 94% planning to maintain quarterly internal governance and oversight. Some executives also warned that less frequent reporting could reduce transparency, weaken financial discipline, and make companies less attractive to investors.