The Securities and Exchange Commission (SEC) proposed amendments that would give public companies the option of filing semiannual reports in lieu of quarterly reports.
Currently, public companies are currently required to file quarterly reports on Form 10-Q. If adopted, the proposed amendments would allow public companies to elect to file semiannual reports on new Form 10-S instead of quarterly reports on Form 10-Q.
Companies that elect to file semiannual reports would file one semiannual report and one annual report for each fiscal year in lieu of three quarterly reports and one annual report. The flexibility would enable public companies to choose the interim reporting frequency that would best serve the company and its investors.
“Public companies have an obligation under the federal securities laws to provide information that is material to investors. Yet, the rigidity of the SEC’s rules has prevented companies and their investors from determining for themselves the interim reporting frequency that best serves their business needs and investors. Today’s proposed amendments, if ultimately adopted, would provide companies with increased regulatory flexibility in this regard,” SEC Chairman Paul Atkins said.
Under the proposal, the filing deadline for semiannual reports on Form 10-S would be 40 or 45 days after the end of the first semiannual period of the fiscal year. The proposal also would amend Regulation S-X, which governs the financial statement requirements for periodic reports, registration statements, and proxy statements. The proposed amendment reflects the new semiannual reporting option and simplifies the existing financial statement requirements.
The proposing release will be published on SEC.gov and in the Federal Register. Public comments will remain open until 60 days after the date of publication in the Federal Register.