New SEC Rule Accelerates Financial Reporting Deadlines
The U.S. Securities and Exchange Commission published a final rule last week requiring publicly traded companies to speed up filing of quarterly and annual reports.
The rule, which phases in over three years, affects public companies with at least $75 million in common stock available for trading. After three years, the companies will have only 60 days to file their 10-K annual reports, down from 90 days today.
Big public companies will have only 35 days to file their 10-Q quarterly reports, down from 45 days.
The SEC will also require the “accelerated filers” to include notices in their annual reports stating where readers can go to find the companies SEC filings on the Web. If companies do not publish their SEC filings on their own Web sites or provide links to other sites that provide the filings, they will have to explain why they have chosen not to do so.
The SEC has not changed its 10-K and 10-Q reporting deadlines in more than 30 years, despite enormous advances in information technology and productivity, SEC officials write in a discussion of the process for developing the final rule.