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US SEC preparing to scrap quarterly reporting requirement

reuters.com

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Re: US SEC preparing to scrap quarterly reporting requirement

#121

Post by zzzeek »

kshacker wrote: post #18

This is an awesome move. They’re not saying the reports go away—just moving them to every six months. After hating how each company runs on an internal quarterly cycle, I have to welcome it despite how the change originated. Six months is still short from the perspective of perverse incentives, but if you free up one week of charade from execs every 13 weeks, maybe they can focus better. And it’s not just execs, but…

this is an incompetent, corrupt change that will be reversed when Trump leaves office in 2029. Companies should likely not change their quarterly reporting since it will only be temporary.

Re: US SEC preparing to scrap quarterly reporting requirement

#123

Post by reg_dunlop »

nevi-me wrote: post #21
Gigachad wrote: post #9

[flagged]

The norm in other countries is 6 months. That's enough time to get the mid-year numbers to be reviewed by an auditor. I don't think malice of the decision.

I don't understand arguments like this.

Universal healthcare? Democratic rule of law? Affordable living wage?

Nah, I'll bang the drum of international equality for corporate malfeasance.

Re: US SEC preparing to scrap quarterly reporting requirement

#124

Post by sheepscreek »

throw0101c wrote: post #53
kshacker wrote: post #18

This is an awesome move. They’re not saying the reports go away—just moving them to every six months. After hating how each company runs on an internal quarterly cycle, I have to welcome it despite how the change originated. Six months is still short from the perspective of perverse incentives, but if you free up one week of charade from execs every 13 weeks, maybe they can focus better. And it’s not just execs, but…

> And it’s not just execs, but the whole corporate machinery that takes 3–6 weeks after quarter end to churn out reports. Release early, release often. If you want corporate machinery to run more smoothly with less effort, force it to operate more frequently not less: when TLS certs had 2-3 year lifespans there was all sorts of manual methods that people forgot how to do; then it was maximum one year. We then got fre…

This sounds great on paper till you realize the amount of time and effort that goes into coordinating so many humans is significant. Also quarterly reporting and TLS certs are worlds apart. There are things like SOX compliance in public companies. It is a mandatory requirement that necessitates so much ceremony surrounding how information is captured and decisions signed off. Then for the execs themselves, it is at least a week of effort easy leading up to the quarterly result call. Prepping for the investor deck, QnAs, being open to more frequent regulator scrutiny. Doing this every month would have diminishing returns for everyone involved.

Source: worked at public companies, helped executives prepare for said calls.

Re: US SEC preparing to scrap quarterly reporting requirement

#125

Post by JumpCrisscross »

throw0101c wrote: post #53
kshacker wrote: post #18

This is an awesome move. They’re not saying the reports go away—just moving them to every six months. After hating how each company runs on an internal quarterly cycle, I have to welcome it despite how the change originated. Six months is still short from the perspective of perverse incentives, but if you free up one week of charade from execs every 13 weeks, maybe they can focus better. And it’s not just execs, but…

> And it’s not just execs, but the whole corporate machinery that takes 3–6 weeks after quarter end to churn out reports. Release early, release often. If you want corporate machinery to run more smoothly with less effort, force it to operate more frequently not less: when TLS certs had 2-3 year lifespans there was all sorts of manual methods that people forgot how to do; then it was maximum one year. We then got fre…

> Release early, release often

Release unrequired. This is the purpose of an 8-K. We don’t need every public firm to constantly release quarterly.

These rules arose in 1970. Granting more flexibility, now, makes sense. (Post SOX, earnings require senior management.)

Re: US SEC preparing to scrap quarterly reporting requirement

#126

Post by fnordpiglet »

throw0101c wrote: post #53
kshacker wrote: post #18

This is an awesome move. They’re not saying the reports go away—just moving them to every six months. After hating how each company runs on an internal quarterly cycle, I have to welcome it despite how the change originated. Six months is still short from the perspective of perverse incentives, but if you free up one week of charade from execs every 13 weeks, maybe they can focus better. And it’s not just execs, but…

> And it’s not just execs, but the whole corporate machinery that takes 3–6 weeks after quarter end to churn out reports. Release early, release often. If you want corporate machinery to run more smoothly with less effort, force it to operate more frequently not less: when TLS certs had 2-3 year lifespans there was all sorts of manual methods that people forgot how to do; then it was maximum one year. We then got fre…

I up you to continuous reporting. Audit should be inherent to the system, not a process after the fact. As a public company all owners should have access to daily closed books, and all companies should be able to close their books daily in 2026.

Every six months being the cadence we learn how our companies we own are doing is absurd. It leads to really long dark periods. Also for employees it means we can only divest in a semi annual window. Our carry risk is extensive and expanding.

This is about hiding truth longer, which is the MO of this administration top to bottom.

Re: US SEC preparing to scrap quarterly reporting requirement

#127

Post by runarberg »

nickff wrote: post #89
hatsix wrote: post #76

Earlier quoted context omitted.

The reports don't have to each be audited... reduce the auditing to twice a year, increase reporting to monthly... if your report requires remediation, you her bumped to quarterly audits

The company would probably be sued if there were any issues in one of the monthly reports; the money for the plaintiff lawyers is just too appealing. I think monthly 'informal' reports with some legal protections to allow for inaccuracies and inconsistencies, with biennial 'formal' reports would be wonderful. That said, I think allowing companies to select an appropriate reporting interval might be best.

Feels like a first world problem. If your company cannot afford to output accurate reports every month, maybe it shouldn’t be a company at all.

Re: US SEC preparing to scrap quarterly reporting requirement

#128

Post by motoxpro »

mrcsharp wrote: post #78
Gigachad wrote: post #28

Earlier quoted context omitted.

At least what I saw, which might be inaccurate, is that in countries with 6 month mandatory reporting, most companies still choose to report quarterly or investors start to get nervous.

Please read the article. > The WSJ report added that the rule is expected to make quarterly reporting optional and not eliminate it altogether. So companies can still do their quarterly reporting if they and their investors want that.

Thats exactly what they said

Re: US SEC preparing to scrap quarterly reporting requirement

#129

Post by nickff »

runarberg wrote: post #127
nickff wrote: post #89

Earlier quoted context omitted.

The company would probably be sued if there were any issues in one of the monthly reports; the money for the plaintiff lawyers is just too appealing. I think monthly 'informal' reports with some legal protections to allow for inaccuracies and inconsistencies, with biennial 'formal' reports would be wonderful. That said, I think allowing companies to select an appropriate reporting interval might be best.

Feels like a first world problem. If your company cannot afford to output accurate reports every month, maybe it shouldn’t be a company at all.

Do you have any sources to back up your feelings? I’m basing my comments on what I’ve read about the matter from a variety of former public company CEOs, CFOs, and COOs.

Re: US SEC preparing to scrap quarterly reporting requirement

#130

Post by ezfe »

nickff wrote: post #60
throw0101c wrote: post #53

Earlier quoted context omitted.

> And it’s not just execs, but the whole corporate machinery that takes 3–6 weeks after quarter end to churn out reports. Release early, release often. If you want corporate machinery to run more smoothly with less effort, force it to operate more frequently not less: when TLS certs had 2-3 year lifespans there was all sorts of manual methods that people forgot how to do; then it was maximum one year. We then got fre…

The problem with reporting often is that the reports must each be audited (which is time-intensive and expensive), and any errors subject the companies to class-action lawsuits (which only ever benefit the lawyers, but that is a separate matter). I would also prefer more frequent reports, but only if they were less burdensome and risky.

Wouldn't the auditing be proportionally easier with less data in each report?
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