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Crowdfunding boosts spacey ideas NBCNews.com (blog) Laine's experience is in line with what other space entrepreneurs are finding: Crowdfunding campaigns can capitalize on the enthusiasm that regular folks have about outer-space ventures such as ArduSat (which would put Internet users in control of a ... See all stories on this topic » | ||
Endymio.com At Indiegogo – Donate Now, Double Your Reading Speed and Get ... Equities.com More detailed information regarding the training modes and their implementation can be found on the pitch page of the crowdfunding platform Indiegogo at http://www.indiegogo.com/endymio. Within the next few weeks the documentation giving an overview ... See all stories on this topic » | ||
Internet finance: How to kick-start your bright idea Financial Times A watch brand has emerged as the king of crowdfunding, a trend that allows creative people to connect online with the public for cash to fund their business ideas. In April, after numerous rejections from venture capitalists and rapidly running out of ... 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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