Groupon Revenue Recognition:

Jun 3, 2011 by Sam

Quick comment on Gross Revenues: One can  argue that net revenues should be recorded ( ie the revenues after the merchant gets it’s cut)  given the fact that it really is similar to collecting a brokerage fee or a commission  and there is no real risk to Groupon unlike Priceline for example where they were allowed to show gross revenues because they  claimed there was some risk- I would not be surprised if there was an SEC comment on that point.