How to Crowdfund Your College Costs TheStreet.com Founder Mark Mauleesan, a 29-year-old who recently graduated medical school with some 60,000 Canadian dollars in student loans, launched Scolaris after seeing people use crowdfunding to raise money for seemingly unimportant things such as buying ... See all stories on this topic » | ||
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SEC kicks the crowdfunding can down the road ITworld.com August 23, 2012, 5:55 PM — One of the most frustrating things for small businesses trying to raise money, has always been the SEC rules against general solicitation and advertising ("Regulation D" under the Securities Act). Want to raise money? Sure. See all stories on this topic » | ||
Regulators Warn of Potential Crowdfunding Fraud KQED State securities regulators are warning investors to look out for con artists selling shares of companies on the Internet. This version of crowdfunding has made the list of Top Investor Traps issued annually by the North American Securities ... See all stories on this topic » | ||
Crowdfunding as an alternative way to raise finance B&C Distributor Providing an alternative way to raise funds, a fairly new phenomenon - known as crowdfunding or peer-to-peer finance - works by pooling small sums from a large number of people, enabling them to collectively purchase property to later sell on for a ... See all stories on this topic » | ||
Broken Sword: The Serpent's Curse put up for Kickstarter crowd-funding The Independent Revolution Software has unveiled the first details of the latest game in Broken Sword series and announced that its development will be paid for by the support of fans via the Kickstarter crowd-funding site. Broken Sword: The Serpent's Curse will be ... See all stories on this topic » | ||
Indie Band Uses IgnitionDeck For Crowdfunding Without The Middleman hypebot.com IgnitionDeck is a DIY crowdfunding platform for WordPress that installs as a plugin and allows bands to raise money without the "restrictions" of other platforms. A common issue that many see with Kickstarter (and others) is that if your campaign fails ... See all stories on this topic » | ||
Crowdfunding: Jobs Creator or Investor Threat? Business Finance Magazine The 2012 Jumpstart Our Business Startups (JOBS) Act was intended to – not surprisingly, given its name – stimulate the economy by making it easier for companies to raise money and comply with reporting requirements. Among other provisions, the Act ... See all stories on this topic » | ||
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Need Cash? A Different Kind of Crowdfunding Service CNBC.com Published: Thursday, 23 Aug 2012 | 5:46 PM ET. Text Size. By: Julia Boorstin CNBC Correspondent. For entrepreneurs who make granola or baby skincare products, a crowdfunding service called CircleUp may be the secret to their next leg of growth. 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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