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Eight Crowdfunding Sites For Social Entrepreneurs Forbes Kickstarter.com: Kickstarter is the 800 pound gorilla in crowdfunding, originally designed and built for creative arts, many technology entrepreneurs now use the site, some reporting to have raised millions of dollars. The Kickstarter funding model is ... See all stories on this topic » | ||
Crowdfunding Stifled at Home, Expands Overseas Business 2 Community Crowdfunding Stifled at Home, Expands Overseas. Crowdfunding, which pools small donations from large amounts of investors, continues to make large, sweeping global inroads. From a donation site supporting the arts to a value-for-value trade to a ... See all stories on this topic » | ||
Why Choose One? Connectify Blends VC and Crowdfunding in Kickstarter ... All Things Digital Networking start-up Connectify finished a successful Kickstarter campaign last week, having raised just more than double its goal of $50,000, the majority of which came in the form of pre-orders for its new product. The company's tantalizing premise is ... See all stories on this topic » | ||
Queremos! – Crowdfunding For Live Concerts hypebot.com While not specifically tailored for the music industry, each year Disrupt highlights particular minds and products that add to the music space, and one being featured today provides a new twist to crowdfunding for musicians. Brazil-based Queremos takes ... See all stories on this topic » | ||
Beware of crowdfunding's downside Bizjournals.com (blog) Nick Petri of the firm that has invested in ExactTarget and Mashery likes crowdfunding—in theory. But, in a couple of blog posts over the past week, he lays out causes for concern as the Securities and Exchange Commission develops rules to allow ... See all stories on this topic » | ||
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Kickstarter propels local entrepreneurs Boston.com So he turned to Kickstarter.com, the online resource for raising money from the general public — or "crowdfunding" — for all sorts of creative projects, from independent films to iPhone accessories to oddball art projects. Schlesinger posted the ... See all stories on this topic » | ||
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Crowdfunding Platforms: Watsi Allows Donors To Pay For Medical Treatments ... Huffington Post Canada Got an urge to give? Crowdfunding could be the answer. For those who like to give through crowdfunding — the concept of multiple donors connecting to individuals online for a cause — one organization has added the option of paying for surgeries to ... See all stories on this topic » | ||
The Small Business Challenge(TM) Attracts Diverse Companies Competing For ... Daily Markets The Small Business Challenge(TM), a competition sponsored by crowdfunding platform EarlyShares.com in conjunction with lonelybrand and CometAds, launched September 1st and will reward the top three companies that show the most promise. 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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