Q1 2026 Quarterly accounting webcast

Shifting Reporting Landscape

Public companies have long navigated the rigors of quarterly reporting, a staple since the 1970s under SEC rules. But in 2025, the second Trump administration revived a push to scrap this requirement, directing the SEC to propose semi-annual reporting instead. This change, echoed in Chair Paul Atkins' pledges, responds to criticisms that quarterly filings foster short-term decision-making at the expense of sustainable growth. By February 2026, proposals are underway, potentially freeing firms from the cycle of 10-Q filings starting mid-year.

The real-world fallout touches thousands of listed entities. Compliance with quarterly reports costs large companies up to $10 million annually in preparation and auditing, per industry estimates. Investors and analysts, however, argue that less frequent updates could spike market volatility—studies show stock prices fluctuate more with delayed information. For sectors like tech and biotech, where rapid innovation drives value, this could mask emerging risks or opportunities.

Layered onto this are sweeping tax reforms from the One Big Beautiful Bill Act (OBBBA), signed in July 2025. Effective January 2026, it permanents 2017 Tax Cuts and Jobs Act provisions, boosts the qualified business income deduction to 25% for pass-through entities, and reinstates 100% bonus depreciation. Accounting teams must recalibrate under ASC 740 (Income Taxes), remeasuring deferred tax assets and liabilities. Miss this, and firms face SEC scrutiny or restated financials—penalties hit $5 million in recent enforcement actions.

Non-obvious tensions emerge between stakeholders. Institutional investors, holding 80% of U.S. equities, favor quarterly granularity for risk assessment, while executives welcome relief from earnings pressure. Trade-offs include potential underinvestment in R&D, as firms prioritize quarterly metrics. Surprising data: A 2025 CFA Institute survey found 60% of analysts believe semi-annual shifts would erode market efficiency.

Meanwhile, the SEC's 2025 withdrawal from defending its 2024 climate rules leaves a void, but states fill it. California's SB 253 mandates Scope 1 and 2 emissions reporting from 2026 for firms with $1 billion in revenue doing business there, with $500,000 fines for non-compliance. This fragments accounting practices, as companies juggle state-by-state rules alongside voluntary ESG frameworks like ISSB standards.

Deadlines loom: Q1 2026 interims, due May 2026, must incorporate these shifts or risk material weaknesses. Costs mount—implementing new tax software alone averages $2 million for Fortune 500 firms. Inaction invites audits, with IRS collections from large corporations up 20% post-OBBBA.