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Bay Area Startups Await Crowdfunding Regulations NBC Bay Area Currently, crowdfunding websites are limited to rewards-based models like Kickstarter, where people can donate money in exchange for goods. An individual soliciting donations to support the production of a documentary, for example, might give free ... See all stories on this topic » | ||
Crowdfunding Startup Gets Its Own Venture Capital Wired You might think that VC firms in Silicon Valley had all the leads on the next big thing they needed. You'd be wrong, which explains why new crowdfunding outfit Funders Club just raised $6 million from a gang of expert early-stage investors, including ... See all stories on this topic » | ||
Pop Acts Go to the Highest-Bidding City New York Times Some crowdfunding sites are starting to change this geography, however, letting fans raise money to bring their favorite bands to town and mitigating artists' risk in traveling to new places. On Tuesday Mr. Bird's fans in Latin America can start ... See all stories on this topic » | ||
Crowd Funding Watch: Political Cartoonist Matt Bors' 'Life Begins At ... ComicsAlliance ComicsAlliance: Why did you decided to use a crowd-funding platform over going through a traditional publisher for Life Begins at Incorporation? Matt Bors: Publishers aren't interested in anthologies as much these days, especially political cartoons ... See all stories on this topic » | ||
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Crowdfunding: there may be trouble ahead as Kickstarter launches in the UK Digital Arts Online Crowdfunding has been hailed by creatives as an exciting new way to raise capital for self-generated projects, allowing entrepreneurs to crowdsource investment from friends, family and third-party investors. But some industry professionals are warning ... See all stories on this topic » | ||
Crowdfunding expert joins Good Innovation UK Fundraising Crowdfunding pioneer Ryan Bromley has joined innovation consultancy Good Innovation to help other charities develop their digital and social media impact. He joins from Cancer Research UK (CRUK) where he was Online Community Manager. While there ... See all stories on this topic » | ||
Crowd Funding for Sauerkraut in Ann Arbor Michigan Radio Credit http://www.kickstarter.com/projects/1396675400/40-barrels-in-40-nights?ref=live. Kickstarter Web page for Sauerkraut fundraiser. An Ann Arbor pickling business hopes "crowd funding" will pay for a lot of sauerkraut – 12 thousand pounds to be exact. 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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