Reference no: EM132290031

On September 23, 2011, Groupon, Inc. issued a third amendment to its Registration Statement (Form S-1) required by the Securities and Exchange Commission (SEC). This amended Form S-1 shows restated revenue numbers from 2008 through the first six months of 2011. Please refer to this specific amendment dated September 23, 2011.

To Do:
• Use the SEC's EDGAR database to locate the following (I provided links for the last two but would like you to find the first four):
o The original filing (S-1 in Edgar) dated June 2, 2011
– See Note 2: Summary of Significant Accounting Policies p. F-11
o The amendment (S-1/A in Edgar) dated September 23, 2011
– See Note 3: Summary of Significant Accounting Policies p. F-12
– See Note 2: Restatement p. F-9
o The SEC comment letter (UPLOAD in EDGAR) dated June 29, 2011 - See Comment 62
o Groupon's response to the SEC comment letter (CORRESP in EDGAR) dated July 14, 2011 - see Comment No. 62
o Groupon's respone to the to the SEC dated August 10, 2011- see Comment Nos.
o Groupon's response to the SEC dated August 29, 2011- See Comment Nos. 13-15

• Locate the relevant excepts from ASC 605 and 606 posted on Blackboard

Required:

Prepare a report that addresses Groupon's revised revenue numbers from those provided in their original S-1 registration with the SEC. The report should briefly
• Describe the purpose of the SEC's S-1 Registration Statement.
• Describe Groupon's business model.
• Identify and clarify the revenue recognition accounting issue faced by Groupon.
• Describe Groupon's revenue recognition before and after the revision. Discuss the magnitude of the effect of the restatement on revenue and net income.
• Evaluate Groupon's pre and post revision accounting based on ASC revenue recognition criteria in place at the time (see ASC 605-45). What justifications existed for Groupon's pre- revision revenue recognition?
• Evaluate Groupon's pre and post revision accounting based on current ASC revenue recognition criteria (see ASC 606). How might your recommendation of accounting treatment differ under the new guidance?

Use the SEC's EDGAR database to locate the appropriate SEC filings related to Groupon's Registration Statement, amended filings and SEC Comment Letter correspondence.

Analyze the appropriate GAAP guidance from ASC 605 and ASC 606 to evaluate the situation and assess the revenue recognition.

Prepare an essay that addresses the issues posed in the case instructions.

Real World Case: Groupon:

1. Does the student clearly explain the purpose of the SEC's S1 Registration Statement?

2. Does the student identify, clarify, and frame the revenue recognition issue in terms of Groupon's business model and gross vs. net methods.

3. Does the student demonstrate the financial reporting restatement effect of the net vs. gross method of revenue recognition?

4. Does the student evaluate Groupon's revenue recognition policies (net vs. gross) based on ASC criteria (principal vs. agent) under 605?

5. Does the student evaluate Groupon's revenue recognition policies (net vs. gross) based on ASC criteria (principal vs. agent) under 606?

6. Does the student recognize the judgment required to apply the ASC criteria to Groupon's revenueRevenue Recognition Issues at Groupon, Inc.

Attachment:- Revenue Recognition Issues at Groupon Inc.rar