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Will the Real Crowd Funding Model Please Stand Up? Business Insider The new hot topic for entrepreneurs these days is crowd funding, which is anticipated to at least supplement, if not replace, the slow and mysterious process of current Angel and venture capital investors. The problem is that crowd funding means ... See all stories on this topic » | ||
Crowdfunding a Success for Dance Choreographers NOLA.com Yet they were able to achieve it through Kickstarter, the most prominent of the "crowd funding" websites. Since its 2009 debut, Kickstarter has allowed independent filmmakers, budding recording artists and other creative types to shake down Web surfers ... See all stories on this topic » | ||
Crowd-Funding Merger Points to Ambitions in Latin America New York Times SAO PAULO — Buenos Aires-based crowd-funding site Ideame has acquired Brazilian company Movere, in a deal that may prompt more consolidation in this sector in Latin America. One-year-old Ideame said it had acquired 100 percent of Movere's shares ... See all stories on this topic » | ||
So the movie you crowdfunded bombed. Now what? io9 To help us in our discussion of crowdfunding, we consulted with entrepreneur and independent film investor Rizwan Virk. Virk is the author of the book Zen Entrepreneurship: Walking the Path of the Career Warrior and blogs at the site Zen Entrepreneur ... See all stories on this topic » | ||
New KickStarter Success Stories Prove Relevance of Crowd Funding Formula Equities.com The KickStarter success stories recently released show not only the viability of crowd funding as a way to raise money for startup businesses, but also the results for companies that use this platform the right way. CNBC released an article Monday ... See all stories on this topic » | ||
And... The Bureaucrats Begin Spreading FUD About Crowdfunding Techdirt We've been waiting patiently for quite some time now to see the SEC's "rules" for equity crowdfunding. As you hopefully recall, earlier this year, the JOBS Act became law, and one part of that was the legalization of certain forms of crowdfunding for ... See all stories on this topic » | ||
An iPod Nano Pocket Watch Crowdfunding on Kickstarter is Designed and Not ... Equities.com Two such designs, PodKit Watch™ + ClipClok™, are iPod nano® watch accessories currently crowdfunding on Kickstarter. An American-Taiwanese industrial designer, Simon Kwan, is amongst the coming wave of independent designers and smaller brands ... See all stories on this topic » | ||
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Second crowd-funding outing for Drone DMND iControl Bluetooth game controller Gizmag That's precisely what the team at Evolution Controllers is doing as it embarks on its second crowd-funding campaign aimed at bringing its Drone DMND Bluetooth controller to market. The slick-looking portable gaming device tips a design nod to classic ... 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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