In its original S-1 filing on June 2, 2011, Groupon presented a non-GAAP measure called ACSOI....

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In its original S-1 filing on June 2, 2011, Groupon presented a non-GAAP measure called ACSOI. It was later removed in an amended S-1/A after the SEC objected. o o What is ACSOI? How does Groupon define it? Why do you think Groupon chose to use this measure to supplement its GAAP earnings information in its S-1? Why did the SEC question the inclusion of ACSOI in Groupon's S-1? In your answer, discuss both the SEC's view and reaction to the expanded use of non- GAAP measures by companies in general and their specific concerns about Groupon's ACSOI measure. o Do you agree with Groupon's argument that discretionary expenses, such as subscription acquisition costs, should be excluded from the financial measures of a company's performance? In general, what are some potential advantages and disadvantages of disclosing non-GAAP earnings? Do you feel that these measures can be informative to investors? Why or why not? In its original S-1 filing on June 2, 2011, Groupon presented a non-GAAP measure called ACSOI. It was later removed in an amended S-1/A after the SEC objected. o o What is ACSOI? How does Groupon define it? Why do you think Groupon chose to use this measure to supplement its GAAP earnings information in its S-1? Why did the SEC question the inclusion of ACSOI in Groupon's S-1? In your answer, discuss both the SEC's view and reaction to the expanded use of non- GAAP measures by companies in general and their specific concerns about Groupon's ACSOI measure. o Do you agree with Groupon's argument that discretionary expenses, such as subscription acquisition costs, should be excluded from the financial measures of a company's performance? In general, what are some potential advantages and disadvantages of disclosing non-GAAP earnings? Do you feel that these measures can be informative to investors? Why or why not?

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ACSOI stands for Adjusted Consolidated Segment Operating Income Groupon defined ACSOI as a nonGAAP measure that represented operating income before acquisitionrelated costs and nonoperating expenses s... View the full answer