The firm I chose to discuss is Reddit. Reddit is a social news aggregation, content rating, and discussion website. Reddit has drawn up detailed plans to launch its initial public offering (IPO) in March 2024. This would be the first IPO of a major social media company since Pintrest in 2019. The integration of financial statements is so important for this firm as they are preparing to go public, and investors will go through all their financials to determine an IPO value. The potential stockholders know that the integration is occurring due to factors that affect the IPO valuation. Some major factors that affect the price of the shares offered in an IPO are 1) the firm's financial performance over the past few years, 2) share market trends, 3) the number of stocks issued in an IPO by a particular company. When investors are deciding which IPO is better to invest in, they make that decision based on its valuation rather than the share price. Investors have to carefully study past performance, financial statements, history, trends, and fundamentals. According to Bloomberg, potential investors are advising it to target at least a $5 billion valuation and planning on selling 10% of its shares in the IPO. Reddit planned to go public back in 2021 but held off as it strived for profitability, a result of financial concepts. One firm that falsified its financials to show profitability was Toshiba, in 2015. As a result of the financial crisis of 2008, the company was under pressure from the CEO to report a profit and was found to have overstated its operating profit by about $1.2 billion. As a result of pressure and company culture, they used improper accounting for over seven years. In response to the investigation, Toshiba released a statement outlining the actions it would take in response to the report. They promised to examine the results of the investigation and to reflect the report's recommendations in its business practices going forward