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Accounting for Revenue-Based Financing
At: Sep 14
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Crowdfunding 102
At: Jun 6
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Crowdfunding Inflation
At: 9/12/2022
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If You Can Read This Post, You Can Invest in Change
At: 6/22/2022
Categories:
The Virtual Impact Crowdfunding Event of the Year September 15-16, 2022
At: 3/9/2022
Tags:
New Crowdfunding Rules Change the World--for Good!
At: 3/23/2021
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I'm working to better understand both U.S. tax and GAAP accounting for revenue-based financing transactions. Below, I'll post the exchange I had with ChatGPT. I was impressed by what it understood (Bing's answer suggests it couldn't understand the question.) Still, ChatGPT ultimately got couldn't cogently explain the accounting rules.
Do you know how to account for the cash flows for both lender and borrower for both tax and GAAP purposes?
Could you help me learn about something I don't understand? I understand the financial implications for borrowers and lenders participating in a revenue-based financing deal, but I don't understand the GAAP and tax accounting for the transactions. Could you help me learn that?
ChatGPT
Certainly, I can provide you with an overview of the Generally Accepted Accounting Principles (GAAP) and tax accounting considerations for revenue-based financing transactions.
GAAP Account