Groupon, Inc. changed its accounting treatment for the third time in amendments to its IPO filing with government regulators according to a report on Daily Deal Media. Instead of measuring revenue by "gross revenue," which includes the money it pays out to merchants, Groupon's revenue will now be measured using its net revenue--the money it retains. The change was requested by the Securities and Exchange Commission.
The accounting treatment was also modified the first and second time Groupon amended its IPO. Among other clarifications, Groupon has changed the measurement of revenue because its original "adjusted consolidated segment operating income" (ACSOI) approach did not factor in key marketing costs. The daily deals company is expected to go public at the end of October.