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$1.3m crowd-funding offers to change a light bulb The Australian Financial Review In one week more than 8000 backers pledged just over $1.3 million on crowd-funding website Kickstarter to pre-order smartphone-controllable light bulbs. But despite having 51 days to go on their crowd-funding campaign, the Lifx Labs team behind the ... See all stories on this topic » | ||
Startups look to SCOR investors through state-level crowdfunding Denver Post Crowdfunding, the buzzword for the past year in tech and investment circles, is expected to explode in 2013 when federal rules are adopted to allow companies to freely sell securities online. But even before then, two Colorado startups have partnered ... See all stories on this topic » | ||
Why crowdfunding can be a terrible investment SmartPlanet.com (blog) ... will raise $2.8 billion. But as more people get in on this trend both on the project creation side and on the investing side, more problems are cropping up, demonstrating the pitfalls of crowdfunding both as a way to seek investment and as a way to ... See all stories on this topic » | ||
UmeNow: CEO Pivots Company to Focus on Creatives, Unemployed College ... Crowdsourcing.org Summary It may come as a surprise that UmeNow is pivoting to support creatives, inviting into its ranks a demographic some would characterize as adept at oversharing. This unexpected pivot, by a company built on encrypted communication, was initiated ... See all stories on this topic » | ||
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Sportfunder – New Online Way To Raise Sport Project Funds Crowdsourcing.org Crowdfunding · Cloud Labor · Crowd Creativity · Distributed Knowledge · Open Innovation · Tools. Content. Article · Blog · Document · Video · Site Question. Category. All; Cloud Labor; Crowd Creativity; Crowdfunding; Distributed Knowledge; Open ... See all stories on this topic » | ||
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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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