Trump Advocates for Semi-Annual Corporate Reporting
President Donald Trump has proposed that U.S. companies shift from quarterly to semi-annual financial reporting to reduce costs and encourage long-term planning.
President Donald Trump has proposed that U.S. companies transition from quarterly to semi-annual financial reporting, aiming to reduce costs and encourage long-term strategic planning. In a post on his Truth Social platform, Trump stated that, subject to Securities and Exchange Commission (SEC) approval, companies should report every six months instead of quarterly. He argued that this change would save money and allow managers to focus on properly running their companies.
Trump contrasted the U.S. approach with China's long-term management strategies, noting that while China has a 50 to 100-year view on company management, U.S. companies operate on a quarterly basis. He suggested that the current system is not conducive to long-term planning.
The SEC requires publicly listed U.S. companies to file quarterly and annual financial reports, known as 10-Q and 10-K disclosures, respectively. The President's proposal would mark a significant shift from this longstanding practice.
This is not the first time Trump has raised this issue. In August 2018, he asked the SEC to study the possibility of moving to semi-annual reporting, citing similar reasons.
The SEC has not yet responded to the President's latest proposal.