Groupon and the SEC Harvard Case Solution & Analysis

Groupon provides an opportunity to review Groupon Inc's S1 filing. Groupon's financial statements brought a great deal of controversy because of revenue recognition policies that created quite substantially higher sales for the corporation, as well as non GAAP earnings measures, particularly ACSOI, an innovation of the company that served to exclude specific advertising expenses from the computation of gain.

Since advertising expenses were a material expense for Groupon at a stage at which it was developing its business the effect of the utilization of ACSOI was as large as the effect of competitive revenue recognition policies. Groupon backed down on the employment of ACSOI following SEC and both revenue recognition queries regarding the corporation's accounting policies.

PUBLICATION DATE: February 10, 2012 PRODUCT #: W12666-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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Groupon and the SEC

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