New Revenue Recognition Standard ASU 2014-09 begins for reporting periods after Dec. 15, 2018 (calendar year 2019 for private companies).
Revenue and profit recognition requirements are changing but, overall, the methodology historically used by contractors will be consistent except for a few key differences:
- Change orders and claims.
- Identification of performance obligations.
- Uninstalled materials.
- Certain contract costs (incremental and fulfillment costs).
New disclosures will be required in financial statements.
This white paper from the CliftonLarsonAllen accounting firm provides a good overview of the new Revenue Recognition Rules. SMACNA members should consult with their accounting/legal advisors for compliance advice. Read more...