Groupon Case Assignment 2014
ACTG 630 – Case Assignment
Due: Wednesday, December 3
Please submit one assignment per group. No more than 3 students per group.
Read “Growing Pains at Groupon” by Dutta, Caplan and Marcinko (2014) and complete the questions included in the Case Requirements section (beginning on page 238).
Instructions for accessing the FASB Codification database:
1. Go to http://aaahq.org/ascLogin.cfm
2. User ID: AAA51526
3. Password: x43AYtX
ISSUES IN ACCOUNTING EDUCATION
Vol. 29, No. 1
2014
pp. 229–245
American Accounting Association
DOI: 10.2308/iace-50595
Growing Pains at Groupon
Saurav K. Dutta, Dennis H. Caplan, and David J. Marcinko
GROWING PAINS AT GROUPON
A
s an undergraduate music major at Northwestern University, Andrew Mason eagerly sought a version of rock music that would fuse punk with the Beatles and Cat Stevens.
Little did he imagine that within ten years he would be the CEO of one of history’s fastestgrowing businesses. After Northwestern and faded dreams of rock stardom, Mason, a self-taught computer programmer, was hired to write code by the Chicago firm InnerWorkings. InnerWorkings was founded in 2001 by Eric Lefkofsky, who had built several businesses around call centers and the Internet. In 2006, Lefkofsky became interested in an idea of Mason’s for a website that would act as a social media platform to bring people together with a common interest in some problem—
Saurav K. Dutta is an Associate Professor and Dennis H. Caplan is an Assistant Professor, both at University at Albany, SUNY; and David J. Marcinko is an Associate Professor at Skidmore College.
We thank the editor, associate editor, and two reviewers for their helpful insights, comments, and suggestions. We also acknowledge our accounting students who completed the case and provided us with valuable feedback.
Editor’s note: Accepted by William R. Pasewark
Published Online: August 2013
229
230
Dutta, Caplan, and Marcinko
most often some sort of social cause. Lefkofsky provided Mason
Due: Wednesday, December 3
Please submit one assignment per group. No more than 3 students per group.
Read “Growing Pains at Groupon” by Dutta, Caplan and Marcinko (2014) and complete the questions included in the Case Requirements section (beginning on page 238).
Instructions for accessing the FASB Codification database:
1. Go to http://aaahq.org/ascLogin.cfm
2. User ID: AAA51526
3. Password: x43AYtX
ISSUES IN ACCOUNTING EDUCATION
Vol. 29, No. 1
2014
pp. 229–245
American Accounting Association
DOI: 10.2308/iace-50595
Growing Pains at Groupon
Saurav K. Dutta, Dennis H. Caplan, and David J. Marcinko
GROWING PAINS AT GROUPON
A
s an undergraduate music major at Northwestern University, Andrew Mason eagerly sought a version of rock music that would fuse punk with the Beatles and Cat Stevens.
Little did he imagine that within ten years he would be the CEO of one of history’s fastestgrowing businesses. After Northwestern and faded dreams of rock stardom, Mason, a self-taught computer programmer, was hired to write code by the Chicago firm InnerWorkings. InnerWorkings was founded in 2001 by Eric Lefkofsky, who had built several businesses around call centers and the Internet. In 2006, Lefkofsky became interested in an idea of Mason’s for a website that would act as a social media platform to bring people together with a common interest in some problem—
Saurav K. Dutta is an Associate Professor and Dennis H. Caplan is an Assistant Professor, both at University at Albany, SUNY; and David J. Marcinko is an Associate Professor at Skidmore College.
We thank the editor, associate editor, and two reviewers for their helpful insights, comments, and suggestions. We also acknowledge our accounting students who completed the case and provided us with valuable feedback.
Editor’s note: Accepted by William R. Pasewark
Published Online: August 2013
229
230
Dutta, Caplan, and Marcinko
most often some sort of social cause. Lefkofsky provided Mason
References: Carlson, N. 2011. Inside Groupon: The truth about the world’s most controversial company. Business Insider (October 31) Financial Accounting Standards Board (FASB). 2012a. Revenue Recognition: Products—Recognition. Financial Accounting Standards Board (FASB). 2012b. Revenue Recognition: Principal Agent Considerations—Other Presentation Matters. ASC Section 605-45-45. Norwalk, CT: FASB. Groupon. 2011a. Form S-1: Registration Statement under the Securities Act of 1933. Filed with the SEC on June 2 Groupon. 2011b. Letter to SEC dated July 14. Available at: http://www.sec.gov/Archives/edgar/data/1490281/ 000104746911006336/0001047469-11-006336-index.htm Groupon. 2011c. Letter to SEC dated August 29. Available at: http://www.sec.gov/Archives/edgar/data/ 1490281/000104746911007725/0001047469-11-007725-index.htm Groupon. 2011d. Amendment No. 4 to Form S-1: Registration Statement under the Securities Act of 1933. Groupon. 2012a. Groupon Announces Revised Fourth Quarter and Full Year 2011 Results, Confirms First Quarter Guidance (March 30) Groupon. 2012c. Form 10-Q. Filed with the SEC on May 15. Washington, DC: Government Printing Office. Phillips, T. J., Jr., M. S. Luehlfing, and C. M. Daily. 2001. The right way to recognize revenue. Journal of Accountancy 191 (6): 39–46. Securities and Exchange Commission (SEC). 2011a. SEC-generated letter dated June 29. Available at: http:// www.sec.gov/Archives/edgar/data/1490281/000000000011039811/0000000000-11-039811-index.htm and Exchange Commission (SEC). 2011b. SEC-generated letter dated August 19. Available at: http://www.sec.gov/Archives/edgar/data/1490281/000000000011050412/0000000000-11-050412index.htm. Steiner, C. 2010. The next web phenom. Forbes 186 (3): 58–62. Stone, B., and D. MacMillan. 2011. Are four words worth $25 billion? Bloomberg Businessweek 4221 (March 21): 70–75. Washingtonpost.com. 2013. Groupon’s CEO writes the best resignation letter ever (March 1). Available at: http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/01/groupons-ceo-writes-the-bestresignation-letter-ever/ (DealBook) March 30, 2012 Friday Page 2 Groupon 's Shares Fall on Revision The New York Times Blogs(DealBook) March 30, 2012 Friday