Question

Summarize in your own words the article below (300 words)

Trivago Ramps Up Finance Team After Material Weakness By Nina Trentmann Feb 8, 2018

Rolf Schroemgens, co-founder and chief executive officer of Trivago, center, cheers with employees during the company's initial public offering (IPO) in New York, U.S., Dec. 16, 2016. Rolf Schroemgens, co-founder and chief executive officer of Trivago, center, cheers with employees during the company's initial public offering (IPO) in New York, U.S., Dec. 16, 2016. PHOTO: BLOOMBERG NEWS Hotel-search company Trivago N.V. has expanded its financial reporting team as it prepares to file its next annual report, said Chief Financial Officer Axel Hefer. The German company, which listed on the Nasdaq in late 2016, disclosed that it found a material weakness in internal controls over financial reporting in the lead up to its initial public offering. At the time, Trivago was heavily reliant on outside consultants and advisors to meet U.S. reporting requirements. “We now have significantly more people that are experts on U.S. Generally Accepted Accounting Principles,” CFO Axel Hefer Wednesday said in an interview with CFO Journal. The expanded staff have helped overhaul Trivago’s reporting process, which is now “completely different,” Mr. Hefer said. The hotel-comparison company is still assessing whether the circumstances that resulted in the material weakness have been mitigated, Mr. Hefer said. Trivago plans on filing its annual report in the next couple of months, he added. The Securities and Exchange Commission requires foreign issuers that have listed equity shares on U.S. exchanges to submit an annual report within six months after the end of the company’s fiscal year. Mr. Hefer did not share how many people have been added to the company’s reporting team or the number of employees in the finance and accounting department. Mr. Hefer last year said the company would phase out reliance on external accounting help. Düsseldorf-based Trivago currently employs over 1,400 people. Trivago Wednesday swung to a wider-than-expected quarterly loss amid reduced spending from advertisers. The company reported a fourth-quarter net loss of €9.6 million ($11.8 million), compared with net income of €0.1 million for the same period last year.

Answer 1

Trivago N.V has celebrated its initial public offering (IPO) in New York on Dec. 16, 2016. The co-founder and chief executive officer of Trivago - Mr Rolf Schroemgens took the opportunity to celebrate the moment of pride and glory of the company with the company's distinguished employees. IPO also vests with the company numerous reporting responsibilities in matters of statutory compliance and overall governance. The company was listed on the NASDAQ in late 2016. The Chief Financial Officer of the company- Mr Axel Hefer has confirmed that the company has material weakness in internal controls over financial reporting in the lead up to its initial public offering. The company had previously largely depended on external help to address its financial reporting requirements and related compliance which it now plans to dispense with. This entails for employing suitable candidates having requisite expertise on U.S. Generally Accepted Accounting Principles. The company has thus scaled up in its deployment of manpower with the required skills set in the financial reporting team of the company in line with its preparedness to file the next annual report in the coming months. As per statute, it requires that the annual report of the company be filed within six months after the completion of the fiscal year of the company. The absolute number in the manpower increase has not been disclosed yet - both the financial reporting team and the finance department. As per sources, the company currently employs over1400 people in its workforce. Amidst, all the speculation of the internal control weakness disruption to the company's operation and management, the company on Wednesday has published its results of the fourth quarter which does not seem promising to the investors. It has reported a net loss of €9.6 million ($11.8 million), compared with net income of €0.1 million for the same period last year. It is also worthy to note that advertisers spending has significantly reduced when compared with prior periods. The situation calls for more vigilant steps from those charged with governance to monitor the performance of the company closely.