The Securities and Exchange Commission has written to Groupon asking the company behind the popular group discount site to clarify the accounting measures it used in its filing for an initial public offering.
In its regulatory filing last month, the Chicago-based online coupon provider referred to a measure called “adjusted consolidated segment operating income,” or “adjusted CSOI,” to measure its profitability (see Groupon’s Accounting Called into Question). The measure leaves out the company’s heavy marketing expenses as well as the expense of buying sites such as CitySearch in Europe. The Securities and Exchange is now looking into the matter, according to CNBC, and has reportedly asked the company to explain exactly what adjusted CSOI involves.
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