Zynga, Facebook and Groupon, such social media company would better to use an independent auditor for unique social media accounting. The revenue of those companies was made by converting real dollars from selling virtual goods to customers. In order to negotiate an appropriate accounting way to record the revenue, Ernst & Young, the public auditor for Zynga and Facebook, made three revenue-recognition methods for social media and gaming companies. The first model is game-based. The company recognizes the revenue by estimating the remaining useful lives of a game. The second model is user-based. The company recognizes the revenue by estimating the average user life according to the period of virtual goods delivery. The third model is item-based
