| ||
First SEC Rulings Launch Crowdfunding with Accrediteds Forbes For everyone in the crowdfunding community, this long-awaited announcement is a positive and essential step towards the realization of the full vision of crowdfunding with accredited investors and everyday non-accredited investors alike. See all stories on this topic » | ||
Crowdfunding to Take Off FINS The Securities and Exchange Commission yesterday outlined its long-awaited rules to allow start-ups easier access to funding, a move expected to boost job creation by small business. The proposed rules implement a provision of the JOBS Act signed by ... See all stories on this topic » | ||
Kansas City Startup AudioAnywhere Launches Indiegogo Crowdfunding ... Examiner.com After successful beta testing in early 2012, AudioAnywhere, a Kansas City-based startup that simplifies the streaming music experience, has launched a crowdfunding campaign through one of the world's largest global funding platforms, Indiegogo. See all stories on this topic » | ||
| ||
| ||
| ||
An IPO for the 99 percent Upstart (blog) First Line doesn't have to wait for new rules to kick in allowing crowdfunding for equity in order to launch IPO Village, since it's selling shares in public companies. The SEC is expected to approve rules for private companies to sell shares online to ... See all stories on this topic » | ||
| ||
|
A start-up using crowd funding to create a product is different from a normal company. The start-up has cash inflows from donations but does not have a product, yet. In this situation, we recommend using completed-contract method to recognize revenue. Under this way of thinking, we assume the start-up is akin to a project or a long-term contract. The crowdfunding company will find it difficult to estimate the revenue from crowdfunders and, hence, the cost of rewards or perks. Under International Financial Reporting Standards (IFRS) and GAAP guidelines, if the firm cannot reliably measure the outcome of the project, revenue should be recognized based on contract costs. These costs should be expensed when incurred. Profit is recognized only at the completion of the project. In summary, for crowdfunding companies, revenue, expense, and profit are recognized only when the crowdfunded product is actually manufactured. 1 For example, assume that AAA Corp. wants to manufacture bicyc...
Comments
Post a Comment