On May 5th, the SEC proposed rule and form amendments that would allow public companies to file semiannual reports instead of traditional quarterly reports. The change would offer issuers greater flexibility in meeting interim reporting obligations under federal securities laws. Under the proposal, companies subject to Exchange Act Sections 13(a) or 15(d) may choose to file a new Form 10‑S twice a year in place of Form 10‑Q. Rather than file three quarterly reports and one annual report, eligible companies could choose the streamlined option to file one semiannual report and one annual report per fiscal year.
Should the proposal be adopted, it would:
- change the filing deadline for semiannual reports on Form 10-S to 40 or 45 days, depending on the company’s filer status, after the end of the first semiannual period of the fiscal year
- amend Regulation S-X, which governs the financial statement requirements for periodic reports, registration statements, and proxy statements, to reflect the new semiannual reporting option and simplify the current financial statement requirements
- allow public companies the ability to determine the interim reporting frequency that best fits the needs of the company and its investors
For more information, please see the Semiannual Reporting rule proposal on the SEC’s site.
The public may submit feedback during the comment period for the proposal, which will remain open for 60 days following its publication in the Federal Register.
Sources:
SEC Proposes Amendments to Permit Optional Semiannual Reporting by Public Companies (sec.gov)
Proposed Rule (sec.gov)
