U.S. companies should be allowed to report earnings every six months instead of on a quarterly basis, President Donald Trump said on Monday, announcing what could prove to be a major shift for corporate America.
The president said on his social media site Truth Social that change, which he had previously called for in 2018, would cut costs and discourage shortsightedness on the part of publicly traded companies. The U.S. Securities and Exchange Commission said it was making Trump’s proposal a priority.
“This will save money, and allow managers to focus on properly running their companies,” Trump said. 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.
The agency in 2018 solicited public comment on possible changes but ultimately left the current regime in place. This time the SEC appeared fully on board.
“At President Trump’s request, Chairman Atkins and the SEC is prioritizing this proposal to further eliminate unnecessary regulatory burdens on companies,” a spokesperson said.
Source: Trump renews calls for ending quarterly reports for companies | Reuters