How Often Should Companies Report? Europe’s Frequency Debate Heats Up

Europe’s Reporting Rules Spark Debate Over Quarterly vs. Semi-Annual Disclosures

From investor demands to regulatory fatigue, Europe’s reporting rules are under fire. Will Germany’s proposed changes ease the load—or risk market transparency?

Europe’s Reporting Rules Spark Debate Over Quarterly vs. Semi-Annual Disclosures

The reporting frequency for companies in Europe has been a topic of debate. Since 2015, quarterly reporting is no longer mandatory for European companies, but stock exchanges can set their own rules. The Deutsche Börse, for instance, requires Dax companies to report quarterly. Meanwhile, discussions are ongoing in Germany about potential changes to reporting obligations, including the possible removal of the annual reporting requirement under the Supply Chain Due Diligence Act (LkSG).

Views on reporting frequency vary among industry experts. Joachim Schallmayer of Deka has criticized the increasing reporting burden, particularly for medium-sized and smaller companies, and called for a review of reporting requirements. Arne Rautenberg of Union Investment supports semi-annual reporting, arguing that quarterly reports fuel overly short-term thinking. However, Benjardin Gärtner of DWS advocates for quarterly reporting, stating it promotes transparency and investor protection.

On the other hand, Pascal Spano of Bankhaus Metzler believes that reporting twice a year is sufficient, and the ad hoc reporting requirement is adequate for keeping investors informed. Marc Liebscher of DSW emphasizes the importance of enforcing the ad hoc reporting requirement and suggests eliminating quarterly reporting for companies outside the blue chips. The German Bundesrat and the federal government are currently discussing these changes, with potential implications for the reporting frequency under the LkSG and the CSRD.

The debate surrounding reporting frequency for companies continues, with arguments for both quarterly and semi-annual reporting. While some experts advocate for less frequent reporting to reduce burden, others stress the importance of transparency and investor protection. The German government is currently discussing these changes, which could potentially impact the reporting obligations for companies under the LkSG and the CSRD.