Singapore Exchange proposes changes to quarterly reporting rules

SGX Logo. Reuters

The Singapore Exchange (SGX) on Thursday proposed changes with regards to quarterly reporting of earnings by the companies.

"Concern about compliance costs has been repeatedly raised among market professionals and listed companies while investors prefer adjustments to QR (quarterly reporting) to be tempered," SGX said in a statement.

SGX said it is looking at various options, including using market capitalisation to determine whether companies should report quarterly earnings or not.

One of the option involves raising the market value of companies required to report quarterly to S$150 million, from S$75 million now.

Companies with market capitalisation of S$150 million and a shareholder with at least 15 percent of the companies' shares must do QR, SGX said.

"Stakeholders including investors, have also expressed concerns about compliance cost. We have weighed these concerns and international developments in coming up with our proposals on possible changes to quarterly reporting," said Tan Boon Gin, CEO of Singapore Exchange

Also Read: Meet the self-driving suitcase that will automatically follow its owner through airport

Another option is to require companies with a market value of S$150 million and a shareholder with at least 15 percent stake to report quarterly.

Minority shareholders of a listed company can vote to opt out of quarterly reporting every three years, SGX said.

Content of reports for the first and third quarter will be simplified to the balance sheet, income statement, cash-flow statement, review of performance commentary of significant trends, and board confirmation, according to SGX.

These changes, if approved by the Monetary Authority of Singapore, will be implemented in the second half of this year.

This article was first published on January 11, 2018