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Quickly adapting to crowdfunding laws Washington Post The Securities and Exchange Commission is proceeding slowly as it draws up rules for equity-based crowdfunding — a not-yet-legal practice that would allow companies to offer stakes to large groups of small investors. The agency, which has already ... See all stories on this topic » | ||
'Skymall of Kickstarter' Catalogs Crowdfunded Stuff You Can Buy LiveScience.com All the items come from Kickstarter and Indiegogo, two major crowdfunding communities. Outgrow.me comes at a time when tech press attention has turned to Kickstarter failures. Just a few days ago, NPR reported that donors aren't guaranteed that they'll ... See all stories on this topic » | ||
Crowdfunding Platform: Preserve Pah Tempe's Healing Waters Ecopreneurist Crowdfunding Platform is a series on Ecopreneurist that aims to help crowdfunding campaigns that have a clear environmental or social focus. Want to feature your campaign? Get the deets here! Project: Healing Waters: The Story of Pah Tempe Hot Springs ... See all stories on this topic » | ||
BUG-A-SALT Enters The Final Five Days Of Indiegogo Crowdfunding Campaign Sacramento Bee LOS ANGELES, Sept. 6, 2012 -- /PRNewswire/ -- SKELL INC., makers of BUG-A-SALT, the insect eradication device that kills flies and other pesky insects with a non-toxic blast of table salt, announced today that it is now the third highest-funded ... See all stories on this topic » | ||
Equity crowdfunding: Will it work? Sacramento Business Journal A concept called equity crowdfunding hasn't yet been tested. But many experts are already questioning whether it will work. The idea — letting startups sell equity stakes online — is one of the most compelling elements of the JOBS Act, which became ... See all stories on this topic » | ||
Tech Talk: Local non-profits get lesson in fundraising and social media at ... Wicked Local Fundly CEO Dave Boyce spoke with the Cambridge Chronicle about how non-profits can increase their donor base by capitalizing on crowdfunding. Fundly is a crowdfunding platform that enables users to solicit and accept donations through the Internet. See all stories on this topic » | ||
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Are You Ready to Start a Business? 20 Questions to Ask Yourself BusinessNewsDaily Since launching in 2009, the crowd-funding site Kickstarter has changed the way people start and finance businesses. In that short time, the site has raised $345 million and successfully launched 29,000 projects. One of those projects was Peak Design, ... 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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