US SEC proposes semi-annual reporting for public companies

The US Securities and Exchange Commission (SEC) has projected changes that would springiness nationalist companies the enactment to determination from quarterly to semi-annual reporting.

Currently, nationalist companies covered by Sections 13(a) oregon 15(d) of the Securities Exchange Act indispensable taxable quarterly updates connected Form 10-Q.

The proposal, if implemented, would let those companies to take to record interim results doubly a twelvemonth connected a caller Form 10-S.

Companies that instrumentality up the enactment would past supply 1 semi-annual study and 1 yearly study successful each fiscal year, alternatively of 3 quarterly filings positive the yearly report.

According to the SEC, the inaugural is aimed astatine allowing companies to prime a reporting rhythm they judge is astir due for their concern and investors.

SEC president Paul Atkins said: “Public companies person an work nether the national securities laws to supply accusation that is worldly to investors.

“Yet, the rigidity of the SEC’s rules has prevented companies and their investors from determining for themselves the interim reporting frequence that champion serves their concern needs and investors.

“Today’s (5 May) projected amendments, if yet adopted, would supply companies with accrued regulatory flexibility successful this regard.”

The draught rules acceptable the submission deadline for Form 10-S astatine 40 oregon 45 days aft the extremity of the archetypal fractional of the fiscal year, depending connected the filer class of the company.

The connection would besides revise Regulation S-X, which sets fiscal connection rules for periodic reports, registration statements and proxy materials, to incorporated the semi-annual reporting enactment and streamline existent requirements.

The SEC said the proposing merchandise volition look connected SEC.gov and successful the Federal Register. Stakeholders volition person 60 days from its work successful the Federal Register to taxable comments.

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