Trump advocates that companies stop reporting earnings on a quarterly basis
US President Donald Trump speaks with the media on September 11, 2025 before boarding Marine One on the southern grass of the White House on the Washington DC.
Mehmet Eser | AFP | Getty Images
President Donald Trump shifted the idea that companies did not report a profit report every three months on Monday and instead of six months.
One Real Social PostTrump said the idea is “subject to prostrate” and “will save money and allow managers to focus on executing their companies properly”.
Trump, “China has a view of a company about the management of a company, but we manage our companies every three months ??? not good !!! ‘ ‘he said.
The wisdom of the three -month reports has previously been in question. In 2018 OP-ED part For Wall Street Journal, Warren Buffett of Berkshire Hathaway and JPMorgan Chase CEO Jamie Dimon avoided three -month guidance, even if there were no earnings reports.
“According to our experiences, three -month earning guidance usually leads to unhealthy focus on short -term snow at the expense of long -term strategy, growth and sustainability.”
Existing regulations require companies to report their earnings every three months, but although predictions are made, it is optional. Rules can be changed from the securities and the stock market commission or may be changed by the congress.
The supporters of the current system say that investors provide transparency about public companies.
Although managers are under some criticism to declare misleading gains, the use of generally accepted accounting principles – GAAP – helped to ensure railings that provide standardization. Therefore, US reporting is considered among the most transparent and reliable in the world.
Despite Trump’s comments on China, the companies there are similar to the US, although they are not more strict. Chinese companies should submit six -month and annual reports as well as three -month earnings reports.
However, companies listed on the Hong Kong Stock Exchange only report every six months.
Trump’s proposal will be more compatible with the applications in the UK and the European Union, where companies can give three -month reports if they wish, but if they wish.
Earlier this year, Norway’s sovereign reserve fund suggested that the extension of the time zone would allow companies to focus on the long term.
The White House rejected more comments about Trump’s shipment.
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