The Accounting Policy & Practice Report ® provides financial accounting policy makers, advisors, and practitioners with the latest news, expert insights, and guidance on emerging, evolving, and complex accounting issues. Expert News & Commentary.
By Phyllis Diamond
Jan. 21 — The Securities and Exchange Commission staff is weighing the pros and cons of continuing to require quarterly financial reports, Keith Higgins, director of the agency's Division of Corporation Finance said Jan. 21.
The discussion hasn't resulted in a formal recommendation to the commission, and research and debate on the topic are likely to continue, he said.
Higgins, who spoke only his views, made his remarks in London in a keynote address at a PLI gathering on European securities regulation.
According to Higgins, commentators have asked the agency to re-think the need for quarterly reporting by U.S. issuers. They say this frequency leads to short-term thinking by both investors and corporate management, and that changing the rules could be “especially appropriate” for smaller issuers because of the burden of having to provide financial statements every three months.
However, Higgins continued, other commentators oppose the change. They argue that replacing quarterly with semi-annual reporting won't spur management to make longer-term business decisions but will increase the temptation for insider trading.
The SEC Advisory Committee on Small and Emerging Companies debated the pros and cons of discontinuing quarterly reporting at Sept. 23 meeting. It recommended that the SEC ease disclosure requirements on “smaller reporting companies” and expand the definition of those companies to include those with a public float of up to $250 million .
To contact the reporter on this story: Phyllis Diamond in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Phyllis Diamond at email@example.com
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)