WASHINGTON (LN) — The Securities and Exchange Commission on Tuesday proposed amendments that would give public companies the option to file semiannual reports in lieu of quarterly reports to meet their interim reporting obligations under federal securities laws.
Public companies subject to Exchange Act Section 13(a) or 15(d) are currently required to file quarterly reports on Form 10-Q. The proposed amendments would allow these companies to elect to file semiannual reports on a new Form 10-S instead.
Companies that elect to file semiannual reports would file one semiannual report and one annual report for each fiscal year, replacing the current requirement of three quarterly reports and one annual report.
“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,” SEC Chairman Paul S. Atkins said in a statement. “Today’s proposed amendments, if ultimately adopted, would provide companies with increased regulatory flexibility in this regard.”
Under the proposal, the filing deadline for semiannual reports on Form 10-S would be 40 or 45 days, depending on the company’s filer status, after the end of the first semiannual period of the fiscal year.
The proposal also would amend Regulation S-X, which governs financial statement requirements for periodic reports, registration statements, and proxy statements, to reflect the new semiannual reporting option and simplify existing financial statement requirements.
The proposing release will be published on SEC.gov and in the Federal Register. The public comment period will remain open until 60 days after the date of publication of the proposing release in the Federal Register.