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'Dark snow' project turns to crowdfunding The Guardian (blog) There is already much excitement in the arts, media and beyond about the potential of crowdfunding - via sites such as Kickstarter and IndieGoGo – to finance projects that might others have remained an unfulfilled dream. To date, though, few scientific ... See all stories on this topic » | ||
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Securities law complaints down, but crowdfunding could change landscape ... Plain Dealer Under a new securities law signed by President Obama last April, companies are allowed to solicit money in a process known as crowdfunding, without going through the complexity and scrutiny of filing registration documents with the Securities and ... See all stories on this topic » | ||
Crowdfunding Sites Help People Pay Medical Bills California Healthline More people are turning to crowdfunding websites to ask friends, family members and strangers for assistance in paying medical bills. Crowdfunding sites provide people with a digital platform to describe why they need money and post updates to a ... See all stories on this topic » | ||
Yooli.com Chooses FICO To Provide Risk Management To China's Crowd ... Daily Markets (press release) China's crowd-funding business has grown significantly over the past two years. According to Fuscent, there are more than 150 crowd-funding online businesses with annual turnover of RMB 5 billion yuan in China. During a period of rapid growth, the ... See all stories on this topic » | ||
ClickStartMe.com announces contest to select spokesmodel for crowdfunding site PR NewsChannel (press release) ClickStartMe.com, the new website that "puts the fun in crowdfunding," announced a nationwide contest to find a spokesmodel to be the face of its new and rapidly growing business. In their nationwide online contest, ClickStartMe is offering 10 ... See all stories on this topic » | ||
Food Cooperative Uses Crowd Funding To Buy Property: A Community Rallies ... STLtoday.com Isla Vista, CA—This week, on the tails of the United Nations declaring 2012 the International Year of the Cooperative, the I.V. Food Co-op became the first cooperative in history to use crowd funding to purchase its property. More than 1,000 people ... See all stories on this topic » | ||
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Downtown Napa Arts Space Earns Crowdfunding Support Patch.com A former warehouse across West Street from the Napa skate park is emerging as the valley's most intriguing arts nonprofit. Slack Collective Art Studios and Gallery is the brainchild of local musician and arts activist Paul Slack, whose vision of a ... 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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