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How Politics Influences Crowdfunding Behavior Huffington Post Here at Indiegogo, we wanted to investigate these political divides in the context of crowdfunding. Specifically, what similarities and differences are there in campaign and contribution behavior across red, blue, and swing states? Using information ... See all stories on this topic » | ||
Questions Around Crowdfunding Wall Street Journal Crowdfunding is a hot topic, and it may turn out to be an important and viable source of seed capital to start-ups. But because it lets small businesses sell equity directly to investors, it may also turn out to be a headache for the brokerage business ... See all stories on this topic » | ||
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SBAC Financing Option for Entrepreneurs Fox Business Members looking for a crowdfunding loan with SBAC would apply for the amount they want and then set a cap on the amount of interest they are willing to pay. People bid on the loan and the interest rate they will charge. Pledges keep accumulating until ... See all stories on this topic » | ||
Begging for Change: Local Developers Use Crowdfunding to Build Game About ... Techvibes (blog) Ideally, art is a mirror: films, songs, paintings and sculpture reflect the truth back at us and give us pause for thought about aspects of our lives and selves we might otherwise turn away from. If games are ever to be fully recognized as works of art ... See all stories on this topic » | ||
Crafting a bamboo phone: ADzero's journey from concept to crowd-funding reality The Verge In mid-September, the worst nightmares of AD, the company behind the ADzero bamboo phone, came true. AD's production prototypes revealed a fatal flaw: the bamboo cases — the phone's key distinguishing feature — were splintering. To make matters ... 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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