Accounting News

Thursday, December 29, 2011
SEC Had Accounting Questions for Groupon

Recently disclosed letters between the Securities and Exchange Commission (SEC) and Groupon show there was some concern about the companies accounting practices. The letters were sent in the summer and fall of this year prior to the companies IPO in November.

The company moved online marketing from its operating expenses. Since they are recurring and normal this is a violation of GAAP. The company also was questioned about their rosy outlook for growth and profitability. Groupon has been one of the IPO disappointments of 2011.

Labels: , ,