Behind the SEC’s reform agenda
The commission’s chief accountant says the aim is to “get more companies to be public.”
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The commission’s chief accountant says the aim is to “get more companies to be public.”
CFO Neil Hansen said making quarterly reporting optional recognizes the multiple, “more user-friendly and often more effective” channels for disclosing information to investors.
Reporting less information may reduce compliance burdens but can introduce other risks.
A majority of respondents to a CFA Institute survey disapproved of the SEC’s semiannual reporting proposal.
Companies with smaller public floats would benefit the most.
Before engaging the board, the CFO needs to measure the potential benefits and understand the investor perspective.
Companies should be able to choose the reporting cadence that’s best for them, Chair Paul Atkins says.
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