The U.S. Securities and Exchange Commission is crafting a proposal that would make quarterly earnings reports optional for public companies, allowing them to file financial results twice a year instead.
Currently, firms must file Form 10-Q quarterly-a requirement in place since 1970. The change would ease short-term performance pressure on executives and lower compliance costs, potentially reversing the decline in U.S. public listings.
Supporters argue the move modernizes reporting standards, noting the European Union ended mandatory quarterly disclosures in 2013. Critics warn it could reduce transparency and delay vital investor information.
The plan is not confirmed. If proposed, it would undergo a public comment period before any vote.