Groupon efforts to give a bad name to accounting are caught out
September 26, 2011 by Jackson Beirne · Leave a Comment
The Groupon situation continues to deteriorate. As noted earlier, their financial forecasts were full of holes. Now they are altering their revenue forecast to reflect the earlier fiction of gross income which is now restated to reflect payments to merchants.
If a groupon costs $10 then $5 +/- is paid to the merchant. Previously Groupon claimed $10 as revenue. Their restated S-1 to the SEC reflects real revenue as $5 in this example.
Who knows if they will even make IPO. There is so much insidiousness about this company. Their last raise was designed to pay out investors and founders. Not a good sign.
Similar Posts:
- Sometimes friction has a purpose
- Receiving A Higher Limit On Your Charge Card Is Easier Than You Think
- Online Tax Attorney Websites – Shortcut Route to Tax Exemption and Reduction
- Falling savings rates could increase risk of debt
- Stock futures dip on weak growth before Fed speech
