SEC Proposes Option for Public Companies to File Semiannual Reports

The U.S. Securities and Exchange Commission proposed amendments that would give public companies the option to file reports semiannually instead of quarterly. The proposal introduces a new Form 10-S for semiannual reports while keeping the annual filing obligation in place.

SEC Chairman Paul Atkins said the existing rules' rigidity has limited companies and investors from choosing the best interim reporting frequency.

The amendments would apply to interim disclosures under Regulation S-X and set filing deadlines of 40 or 45 days after the end of the semiannual period, depending on the company's filer status. Public companies would still be required to provide material information to investors.

The proposal does not eliminate any disclosures but allows companies to determine whether semiannual filings better suit their needs.

According to the SEC, the change would amend Regulation S-X to simplify financial statement requirements for periodic reports. Companies could choose semiannual reporting, which multiple sources noted might save costs. The proposal aligns with prior calls to move away from mandatory quarterly reporting.

The SEC's action follows statements from former President Trump calling for an end to mandatory quarterly earnings reports. One source separately noted that Walt Disney Co. is set to report earnings for the first time under new CEO Josh D'Amaro, an example of the current quarterly system operating while the proposal is under consideration.

The proposal itself does not immediately affect ongoing quarterly filings.