Monday, September 26, 2011

Missed by THAAAAT Much!

Oftentimes, sales and earnings are 'adjusted' for one reason or the other.  Usually, the adjustments are somewhat small--maybe even 'technical,' having to do with capitalizing leases or foreign-revenue adjustments, blahblah.

Not these.

...Last week, Groupon restated its financial reports to comply with revenue accounting rules as called for by Ketz and Catanach. The company revised its reported 2009 revenues from $30.5 million to $14.5 million and its 2010 revenues from $713.4 million to $312.9 million – no small potatoes!

That would be a $400 million "error"--more than half the reported revenues.

So.  What, exactly, was Ernst & Young .........ahhhh........."thinking"?

Much more here, and it's a must-read.  Groupon's business model?   Umnnnhhhh......nope.

HT:  BigPic

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