U.S. Rep. Ann Wagner (R-MO) introduced legislation in the U.S. House of Representatives that would require the Securities and Exchange Commission (SEC) to simplify quarterly financial reporting for SEC registrants.
The Modernizing Disclosures for Investors Act (H.R. 3454) would allow issuers of securities traded on a national securities exchange to disclose quarterly financial information in a simplified manner, such as through a press release or by a shortened form. In other words, it would be in an easier way than the current 10Q.
“Current reporting requirements can be overly burdensome for companies, especially for smaller and emerging businesses who may not have the resources to adequately manage the complex reports the SEC requires,” Wagner, vice ranking member of the House Financial Services Committee, said. “My legislation would institute appropriate reforms and simplify the disclosure process. These reforms would benefit both businesses and Main Street investors by lowering administrative burdens on companies and increasing transparency for investors looking to make informed and sound choices.”
Wagner also introduced this bill in the previous Congress. That previous bill stipulated that financial statements should include a quarterly income statement, a balance sheet as of the last day of the quarter, a statement of operations, as well as a statement of any material changes in financial condition or results of operations since the end of the issuer’s most recent financial statements.