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Recommended: Uwingu's mystery crowdfunding campaign pledges support for ... NBCNews.com (blog) Uwingu's founders declared today that half of any money it raises beyond the initial amount sought through its IndieGoGo crowdfunding campaign would go to the SETI Institute to support its Allen Telescope Array in Northern California. "We don't have to ... See all stories on this topic » | ||
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Crowdfunding to help Phillipe Dubois make watches WatchPro.com ... the company up to investors and shareholders through a crowdfunding scheme. Thomas Steinemann, the brand's new owner, has opened the crowdfunding to generate the necessary funds to produce a new collection, which will be go on sale next year. See all stories on this topic » | ||
Securities-Based Crowdfunding Opens Under GATE-Crowdfunder Alliance MarketWatch (press release) NEW YORK, Aug. 29, 2012 /PRNewswire via COMTEX/ -- In response to today's ruling by the Securities Exchange Commission (SEC) to relax general solicitation for accredited investors under the Sunshine Act, GATE Global Impact has announced a strategic ... See all stories on this topic » | ||
Crowdfunding Innovator Return on Change Announces Startup Contest Winners MarketWatch (press release) NEW YORK, NY, Aug 29, 2012 (MARKETWIRE via COMTEX) -- Crowdfunding innovator Return on Change (RoC) today announced the winners of its startup contest. The judges selected Maya Mountain Cacao, Sentimed Medical Corporation and Thankster ... See all stories on this topic » | ||
Revolution leads way in asking the crowd for funds Yorkshire Post Revolution leads way in asking the crowd for funds. Published on Wednesday 29 August 2012 06:00. SOFTWARE developer Revolution is using crowdfunding to develop the latest instalment of its multi million-selling Broken Sword adventure game series. See all stories on this topic » | ||
Crowdfunding Webinar for Entrepreneurs and Investors August 31st PR Web (press release) An informative webinar discussing the pros and cons of the new crowdfunding financing vehicle will be available to interested entrepreneurs and investors on Friday, August 31st at 10 a.m. PDT during the TriTech SBDC Freestyle Entrepreneur Forum. 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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