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Before CROWDFUND Act takes effect, investors can help boost local start-ups ... Boston.com (blog) With rules about actually investing in companies about to become a bit more lax, the crowdfunding floodgates might open even wider, with new crowdinvesting site WeFunder, based in Cambridge, hoping to join the ranks of Kickstarter and IndieGoGo as a ... See all stories on this topic » | ||
Community-Based Investing: A Higher Evolution of Crowdfunding Forbes Legalizing crowdfunding for accredited investors is the first in a series of securities-law changes to roll out during the S.E.C.'s 270-day ruling period. With crowdfunding for accrediteds about to go live, it's my guess that rules for non-accredited ... See all stories on this topic » | ||
NPR on crowd funding for musicians, via Seattle's The Physics The Seattle Times 545802_10150688449997024_2088833419_n_wide-381eb816e9fb21ad761325924299bb98d219c13c.jpeg. Photo by Canh Nguyen. Kickstarter.com is a good way to raise money for your creative project. But using the crowd funding website can be risky. See all stories on this topic » | ||
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Documentary on Salvadoran 'Guerrilleras' Turns to Crowdfunding Global Voices Online Photographers Rebecka BÃró (Sweden/Spain) and Victoria Montero (Argentina) have teamed up to create 'Guerrilleras' a documentary and photography project about the experience of women in the guerrilla during the Salvadoran Civil War (1980-1992). See all stories on this topic » | ||
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Crowdfunding: sorting the regulatory rules Portland Business Journal (blog) The new JOBS Act could put more pressure on startups to verify that certain investors are "accredited," which could spawn an emerging service industry of third-party verification companies. As the Puget Sound Business Journal reports, that's according ... See all stories on this topic » | ||
Kickstarter clamps down on nonexistent products CNN NEW YORK (CNNMoney) -- Crowdfunding site Kickstarter surprised its users late last week with a new set of policies tightening the rules on hardware makers. In a blog post bluntly titled "Kickstarter is Not a Store," the site laid down the new law ... See all stories on this topic » | ||
Reaching success: tips from the "Sharks" HLNtv.com Crowdfunding has become an extremely valuable platform for entrepreneurs who are looking for funding. The traditional route that starts with a trip to the bank for a loan is no longer necessary. All it takes is an idea and a crowdfunding website for ... 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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