(Groupon) has dropped the bomb Groupon.
Closed after Friday, then announced correction (restatement) the financial statements of the past, the company and 713 million U.S. dollars to 312 million U.S. dollars, which has been described in the S-1 to date sales for 2010 Corrected.
It was announced that COO was scout with great fanfare from Google at the same time (Chief Operating Officer), Margo Joe Jadisu is to leave the company.
This news has shocked Wall Street only had appeared to resume the IPO road show that was postponed once even as early as next week to Groupon.
Now, change the (way of crediting) Recognition of sales of this time is the issue that has been controversial for some time brings on.I think we should epithet “Groupon is quietly according to the practice of the world,” and rather than say “accounting fraud” in this sense.
To illustrate, here’s a specific example.
I restaurant in San Francisco has been sold at $ 50 a coupon of $ 100 equivalent if now.In other words, is a deep-discount sale of 50% discount.
The customer purchased the coupon site Groupon, payment of the price and was done with a credit card.
There is agreement that split the sales 50:50 between the restaurant and Groupon now.
Thus once, Groupon is a translation receive $ 50 from the customer as a stream of money, but half of them, that is $ 25 is money to be passed to the restaurant from right to left.
Originally, to argue that it is sales of Groupon to money Giving to the restaurant immediately criticism that it is excessive reporting of sales did not cut off the back for this.
It should be noted that the accounting method of sales such as these are also carried out, such as travel site.For example, if the travel site has sold the ticket, most of the purchase price will be paid to airlines from right to left in practice.Ticket sales commissions remain in the hands of travel sites only (fee).But you would be able to show a lot of sales by including in net sales airfare.
You think that it is also true that wind succumbed to severe pursuit of investors and the Securities and Exchange Commission modification of method of accounting or delay the IPO of Groupon recently in some sense.
Investor’s wish to flinch that it be confronted by the place where sales is reduced by half at a time is no unreasonable.
It is not impossible also be received in the positive, “I feel fine now but rather” in the sense just a variety of issues that were cleared before the IPO.