Groupon's 'Unusual' Accounting Metric Draws SEC Scrutiny
The company could be misleading investors
Groupon is in hot water with the Securities and Exchange Commission due to a questionable accounting metric that it’s been using to market itself to investors in preparation for its upcoming IPO, reports The Wall Street Journal.
The SEC has asked Groupon to answer questions about an “unusual” measure it invented that presents a stronger image of the company’s finances by excluding marketing and other expenses, a source said. Groupon claims that the “adjusted consolidated segment operating income,” or adjusted CSOI, gives investors a better look at the company’s performance by leaving out “expenses that are noncash or otherwise not indicative of future operating expenses.”
WORK SMARTER - LEARN, GROW AND BE INSPIRED.
Subscribe today!
To Read the Full Story Become an Adweek+ Subscriber
Already a member? Sign in