Trump calls for companies to stop reporting profits on a quarterly basis

president Donald Trump The idea of ​​the two companies was raised no longer submitting the profit report on a quarterly basis and transforming into semi -annual instead.

in Social truthTrump said the idea “is subject to the approval of the Supreme Education Council” and will provide money, and allow managers to focus on the management of their companies properly. “

Trump said: “Have you ever heard the statement that China has a view of 50 to 100 years about the management of a company, while we manage our companies on a quarterly basis ??? Not good !!!”

The wisdom of quarterly reports has become a question of question before. In 2018 Introduction piece For Wall Street, Berkshire Hathaway Warren Buffett And Jpmorgan Chase CEO Jimmy Damon He called for getting rid of quarterly directions, but not profit reports.

The couple wrote: “In our experience, quarterly profit guidelines often focus on short -term profits at the expense of the long -term strategy, growth and sustainability.”

Current regulations require that companies be reported on profit on a quarterly basis, although providing predictions is voluntary. The rules can be changed either from the Securities and Stock Exchange Committee or can be changed by Congress.

Supporters of the current system say it provides investors in a timely manner in addition to transparency about public companies.

While CEOs have been criticized to report misleading profits, the use of acceptable accounting principles – GAAP – has helped to provide handrails that guarantee monotheism. For this reason, American reports are among the most transparent and reliable in the world.

Despite Trump’s comments about China, companies there have similar requirements for the United States if not more strict. Chinese companies must submit quarterly profit reports in addition to semi -annual and annual reports.

The companies listed on the Hong Kong Stock Exchange, however, reports only every six months.

Trump’s proposal will be more in line with practices in the UK and the European Union, where companies must submit a semi -final but can issue quarterly reports if they choose to.

Earlier this year, Norway’s sovereign wealth fund suggested switching to semi -annual reports, with the consider that the timeline prolongation would allow companies to focus in the long term.

The White House rejected more comment on Trump’s publication.

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