Investors resist SEC move to halve reporting frequency
The California Public Employees’ Retirement System and the American Accounting Association also opposed the change, according to Reuters.
The accounting group warned that semiannual reporting could let accounting problems go undetected for longer, “potentially increasing the costs to remediate when eventually discovered.”
Separately, the CFA Institute reported that its own survey of 2,500 analysts and portfolio managers, conducted in January, found 62 percent opposed a switch to semiannual reporting and about 70 percent opposed letting companies set their own reporting frequency.
Nearly 85 percent raised concerns about comparability between companies, the body said on 10 June.
Matthew Winters, the institute’s senior director of corporate disclosures and information advocacy, said the central question was what investor problem the SEC was trying to solve, and the report recommended keeping mandatory quarterly reporting.
