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Get creative with crowd funding The Canberra Times Foley was taking part in something called crowd funding: putting an idea online and encouraging other people, mostly strangers, to chip in cash to make it happen. People behind these projects being pitched offer rewards to donors. For example, Foley ... See all stories on this topic » | ||
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Couragent using Launchpad to raise capital Boulder County Business Report BOULDER - Mobile-scanner manufacturing company Couragent Inc. wants to raise $350,000 online using a crowdfunding technology platform created by Funding Launchpad. Terms of the deal were not disclosed between Boulder-based Vim Funding Inc., ... See all stories on this topic » | ||
EarlyShares.com Sponsors Small Business Challenge For Companies That ... Daily Markets In an effort to stimulate job creation in America, Equity Based Crowdfunding platform EarlyShares.com is sponsoring the Small Business Challenge, a competition that invites companies to compete for a share of $50,000 in cash and marketing resources to ... See all stories on this topic » | ||
Crowdfunding Site For Artistic Projects Launches PR Web (press release) Robert Dobyns, CEO of Conzortia Business Funding, Inc. has announced the official launch of their new crowdfunding platform built specifically for Film, Art, Comic, Game and Mobile App Projects in the U.S.. Crowdfunding is a consortia of people pooling ... 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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