Lates News

The U.S. Securities and Exchange Commission (SEC) proposed on Tuesday to terminate the quarterly financial reporting requirements for companies trading in the U.S. and allow them to switch to semi-annual reports. President Trump first introduced this idea in his first term and it became a priority for the government again in September last year. SEC Chairman Atkins stated in a statement on Tuesday, "The rigidity of SEC rules prevents companies and their investors from determining the most suitable reporting frequency for their business needs and investors." This move has received support from many companies and investment banks, such as JPMorgan Chase, who believe that quarterly reports impose heavy and costly burdens on businesses. They also argue that quarterly reporting promotes short-termism in companies, sacrificing long-term planning, and is one of the factors contributing to the sharp decline in the number of listed companies in the U.S. over the past decade.