2 Diverging Standards On Disclosing Interim Financial Info

By Kevin LaCroix (June 26, 2017, 11:47 AM EDT) -- We have seen the scenario before — shortly after its debut, an IPO company releases unexpected results, the company's share price declines, and the lawsuits appear. Usually when this happens, the updated results pertain to reporting periods following the initial public offering. But what about a situation where the disappointing results pertain to a reporting period that was completed prior to the IPO — in fact, the day before the IPO? That was the situation in the case of Vivint Solar, where the company released results for the reporting period ending Sept. 30, 2014 — that is, just a day before the company's Oct. 1, 2014 IPO — several weeks after the company's debut....

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