President Trump drove on Monday, which would be a welcome surprise for many in the American business – an end to the heavy cycle of preparing quarterly income.
In a position on Truth Social, the social media platform of Trump, the president said that companies would only have to report financial results every six months, which means that the three -month rhythm of rhythm ends up that the business calendar defines.
“Subject to SEC goods inspection, companies and companies no longer have to be forced to 'report' a quarterly base (quarterly reporting!), But rather to report on the basis of six (6) month,” Trump wrote.
“This will save money and enable managers to concentrate on running their companies well,” he added. “Have you ever heard the statement that” China has a vision of 50 to 100 years about the management of a company, while we run our companies every three -monthly ??? 'Not good !!! “
Financial reporting standards vary in international markets. American scholarships require public companies to report financial data every quarter, while most exchanges in Europe require these reports only twice a year.
The Securities Exchange Act of 1934 enables the SEC to require quarterly financial reports from American listed companies.
Trump himself has a lot of experience with dealing with the reports of the sec. In 2002, his company Trump Hotels & Casino resorts established with the SEC on a report from 1999 in which the “adapted” income includes a one -off profit of $ 17.2 million, but excludes a cost of $ 81.2 million.
Trump's regulation with the SEC appeared during his first run for the president in the context of what was then a cordial debate in the investment community about the value of Gaap versus non-Gaap (or “adapted”) financial results. The earlier standard is how American companies should be to report their financial data, according to the Governmental Accounting Standards government council; The last standard enables companies to record or exclude certain items to offer investors which management often regards a more accurate picture of the underlying company.
Warren Buffett, the departing CEO of Berkshire Hathaway (BRK-B) who has never organized a quarterly call, has resolved over the years against the use of adapted financial data and the broader song and dance of these regular reports.
In his letter to the shareholders from 2022, Buffett warned: “Even the effective The profit that we favor can easily be manipulated by managers who want to do this. Such mess is often considered advanced by CEOs, directors and their advisers. Reporters and analysts also embrace his existence. “
