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From Open Source to Crowdfunding ComputerworldUK (blog) Crowdfunding can be defined as a collective effort of many individuals who network and pool their resources to support efforts initiated by other people or organizations. This is usually done via or with the help of the Internet. Individual projects ... See all stories on this topic » | ||
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Why So Little Racial and Ethnic Diversity in Crowdfunding? The Nonprofit Quarterly He acknowledges many crowdfunding success stories in an industry that he says will generate $2.8 billion in funding for start-up and small enterprises this year (nearly double what it generated last year) and he argues that crowdfunding has "more ... See all stories on this topic » | ||
RocketHub's Brian Meece talks to Handshake360 about crowdfunding in higher ... Crowdsourcing.org (blog) Description Crowdfunding has quickly become one of the most important tools for an entrepreneur to utilize. The problem is, most don't know what it is or how it works. Brian Meece, CEO/co-founder of RocketHub, tells Handshake360 exactly why it's so ... See all stories on this topic » | ||
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MechWarrior Online to be "a lot better" thanks to crowdfunding VG247 "The product will be a lot better for players because of the crowdfunding. It's allowed us to maintain a higher level of ongoing development in the product, than if we were waiting for momentum to build immediately after going live. In the next few ... See all stories on this topic » | ||
Catapult - Drawing the Line Against Gender Inequality AllAfrica.com Catapult is the first and only crowdfunding platform dedicated to fund raising for girls and women. We are the first site dedicated to driving funds to projects and organisations that improve the lives of girls and women around the world. Catapult ... See all stories on this topic » | ||
Crowdfunders Want More EU Support Wall Street Journal (blog) By Nick Clayton. Crowdfunding appears to offer a novel and valuable way of raising capital and creating jobs, especially in the wake of the banking crisis which has starved entrepreneurs and small businesses of investment. But providing legislative ... See all stories on this topic » | ||
Sofar looks to the crowd for more gigs brand-m.biz Pop-up gigs outfit Sofar has launched a campaign on crowdfunding site PledgeMusic so that it can put on even more cosy live music performances. Since lighting in 2009, Sofar has played host to laid-back, private concerts in 30 different cities in the ... 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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