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Cafe Green and Java Green turn to crowdfunding model to pay off back taxes Washington Post Kim's campaign is a departure from the sort of "crowdfunding" appeal popularized by sites such as Kickstarter, which typically raise money for start-ups, art projects and other ventures. And some were skeptical. "I'm not sure donating would actually ... See all stories on this topic » | ||
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Four furry projects at adult crowdfunding website Offbeatr Flayrah Four furry projects at adult crowdfunding website Offbeatr. Posted by earthfurst on Sat 1 Sep 2012 - 15:22. Select rating, Poor, Okay, Good, Great, Awesome. No votes yet. Offbeatr is a new crowdfunding website which allows erotic projects ... 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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