Stock Market: Will results be presented half-yearly, not quarterly? Will the SEC propose a rule change?

News Topical, Digital Desk : Another major and historic change may occur during the tenure of US President Trump. Under this change, it is possible that in the future, companies in America will stop reporting quarterly results and will only report their results twice a year. US Securities and Exchange Commission (SEC) Chairman Paul Atkins said that after President Donald Trump's call to reduce quarterly earnings reporting to once every six months, the agency will now propose a change in the rules. Trump has already said that companies should report results only twice a year instead of four times so that they can focus more on their work. However, those standing against this proposal consider it against transparency.

What the SEC Chairman Said

Speaking with CNBC, Atkins said that he welcomes the President's initiative and has already discussed the matter with him. For now, proposing a rule change would be the right step, and then considering it and moving forward. Atkins said that if the rule change is approved, companies will have to decide for themselves whether to adopt semiannual reporting or continue with quarterly reporting. He believes the market can best decide what is in the best interest of companies and investors. What the Current Rules Say Under current rules, all listed companies are required to release their results quarterly, though whether they choose to provide guidance or not is up to them. Trump Supports Semiannual Results The US President supported semiannual reporting this week, arguing that it will save companies money and allow them to focus more on their operations. The ongoing debate on the issue The issue of reducing the number of reporting periods has been a topic of debate for quite some time. Those in opposition believe this will reduce transparency and impact retail investors, as they will no longer have a means to assess a company's health. However, those in favor argue that this will encourage companies to focus on long-term plans. Atkins argues that biannual reporting is not a good idea. He added that there has been a discussion for several years that quarterly reporting increases short-term focus. 

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