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Crowdfunding: Kickstarter vs. IndieGoGo Huffington Post If you're going to start a crowdfunding campaign you will inevitably come to the point where you will need to decide what platform to use. For my first project for my book series, I ended up raising over $35,000 on my own, without either Kickstarter or ... See all stories on this topic » | ||
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Watsi Is Using Crowdfunding To Treat The 1B+ Worldwide Without Access To ... TechCrunch ... high-impact treatment for those who lack access to necessary care. Drawing on the recent explosion of crowdfunding, Watsi is applying a familiar model to a space in which crowdfunding is more unfamiliar: Global healthcare. While there are health ... See all stories on this topic » | ||
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Austin projects that collect Kickstarter capital Bizjournals.com (blog) Kickstarter Inc. officials say Austin is the seventh-most active U.S. city using its crowdfunding model to launch projects. Fifty-three local projects are seeking funding from Kickstarter, company officials said. Local entrepreneurs have secured ... See all stories on this topic » | ||
Drown casts Matt Levett, launches crowdfunding campaign Inside Film Local feature film Drown has cast Matt Levett in the lead role and has launched an online crowd-funding campaign. The low-budget film, which will tackle themes of bullying and homophobia, aims to raise $100,000 in 65 days via Indiegogo. Levett is ... 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...
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