IMA Financial Reporting Committee Comment letter on Securities and Exchange Commission Release No. 33-10588, Request for Comment on Earnings Releases and Quarterly Reports
The IMA Financial Reporting Committee (FRC) issued a comment letter in response to Securities & Exchange Commission (SEC) Release No. 33-10588, Request for Comments on Earnings Releases and Quarterly Reports. In this release, the SEC seeks input on the current means of issuing interim information to the market. Today, a publicly-held company typically issues both an earnings release and Form 10-Q. In addition, many companies provide earnings guidance regarding anticipated quarterly results.
In its response, the FRC commends the SEC’s exploration of ways to reduce the administrative burdens associated with quarterly reporting. The Committee views favorably the current practice of voluntary earnings releases separate from Form 10-Q filings because it allows companies flexibility in providing information that investors need in a timely manner. The FRC recommends that the SEC, in conjunction with the FASB, focus on the purpose of interim reporting, which is to inform on significant changes to annual results, and to explore opportunities to modernize both the quarterly and annual reporting processes.