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The SEC filings are important sources of investor information. The SEC filings contain reports of the company’s data, internal transactions and other material data of importance to investment decisions. The investors would try to find and analyze the SEC filings to ensure that they are well informed and updated with all the company’s developments and prospects for growth. In most cases, the SEC filings are provided in annual reports, quarterly reports, current trading events and internal trading forms. Groupon’s SEC provided valuable data such as cash flow and Adjusted Consolidated Segmented Operating Income (ACSOI) that inform analysis of the company’s prospects for future growth thus informing investment decisions. Company websites also serve to give relevant information such as presentations and financial statements for investment decisions.
Groupon expects to expand its operations to cover more countries and customers through the launch of expanded offerings like Getaways & NOW and partnership with other companies such as Expedia. Furthermore, Groupon expects to increase the number of the retailers they deal with to expand the company’s profit base and manage competition from other similar companies.
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Groupon’s accounting indicates the confusions between the US GAAP and the IFRS system in reporting financial performance (O’Farrell & Chunhui, 2015). The US GAAP restricts its financial reporting measures to the regulations defined in the SEC while IFRS promotes diverse practices regarding line items, headings, and subtotals on the income statement. The IFRS moreover allows the company to include more items considered relevant to understanding an entity’s financial performance (Ruggieri & McQuilkin, 2015).
Groupon’s accounting system does not follow the US GAAP or IFRS system exclusively but integrates the two concepts to provide their financial performance (Ruggieri & McQuilkin, 2015). The US GAAP requires that public companies do not disclose non-GAAP measures in their financial statements yet Groupon has disclosed such (O’Farrell & Chunhui, 2015). Groupon, therefore, took advantage of the IFRS system allowing the company accountants the autonomy to decide what is relevant in reporting the company’s financial performance, therefore, mixing the two accounting concepts (Ruggieri & McQuilkin, 2015).
- O’Farrell, G., & Chunhui, L. (2015). IMPACT OF DIFFERENCES BETWEEN INTERNATIONAL FINANCIAL REPORTING STANDARDS AND US GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ON PERCEIVED COMPANY PERFORMANCE. International Journal of Business, Accounting, & Finance, 9(2), 103-111.
- Ruggieri, L., & McQuilkin, J. (2015). CONVERGENCE OF US GAAP TO IFRS – WILL IT HAPPEN? WHERE IS THE SEC?. Proceedings for the Northeast Region Decision Sciences Institute (NEDSI), 1-13.