You are wrong. Groupon's accounting was NOT standard GAAP accounting.
At issue is whether or not Groupon was the principal or the agent in the transaction. To determine whether or not Groupon is the principal (which they would need to be in order to book the entire coupon as revenue) they would have to satisfy ASC 605-45. The following was taking from http://www.pwc.com/en_GX/gx/pharma-life-sciences/pdf/med-tec...:
ASC 605-45-45, Revenue Recognition—Principal Agent
Considerations [formerly contained in EITF 99-19], includes a
number of indicators of gross and net arrangements. Indicators
to evaluate gross treatment include:
• The seller is the primary obligor in the transaction.
• The seller has inventory risk (general inventory risk before
customer order is placed or upon customer return or risk of
loss after customer order or during shipping).
• The seller has latitude in establishing price.
• The seller changes the product or performs part of the
service.
• The seller has discretion in supplier selection.
• The seller is involved in the determination of product or
service specifications.
• The seller has physical loss inventory risk.
• The seller has credit risk.
It's obvious they were the agent and not the principal for the transaction. This is why they were forced to change their accounting for their revenues.
At issue is whether or not Groupon was the principal or the agent in the transaction. To determine whether or not Groupon is the principal (which they would need to be in order to book the entire coupon as revenue) they would have to satisfy ASC 605-45. The following was taking from http://www.pwc.com/en_GX/gx/pharma-life-sciences/pdf/med-tec...:
ASC 605-45-45, Revenue Recognition—Principal Agent Considerations [formerly contained in EITF 99-19], includes a number of indicators of gross and net arrangements. Indicators to evaluate gross treatment include: • The seller is the primary obligor in the transaction. • The seller has inventory risk (general inventory risk before customer order is placed or upon customer return or risk of loss after customer order or during shipping). • The seller has latitude in establishing price. • The seller changes the product or performs part of the service. • The seller has discretion in supplier selection. • The seller is involved in the determination of product or service specifications. • The seller has physical loss inventory risk. • The seller has credit risk.
It's obvious they were the agent and not the principal for the transaction. This is why they were forced to change their accounting for their revenues.