Monday 3 November 2014
The article discusses the mechanics of the revenue recognition calculation process for both construction and service operations. It addresses issues raised by FASB/IASB Discussion Paper Preliminary Views on Revenue Recognition in Contracts with Customers (Dec 2008) and FASB Accounting Standards Update (ASU) 2014-09 Revenue from Contracts with Customers (Topic 606, May 2014).
Dick and Brian show that the new changes will not alter the basic philosophy of revenue recognition for construction, but rather will help clarify issues such as job partitioning and performance obligations related to revenue recognition.
Richard L Werner PE is Chairman of Construction Industry Solutions Corp (COINS USA) in Latham, NY. A frequent speaker and writer on construction industry issues, Dick is a longtime CFMA member and contributor to CFMA Building Profits.
Brian Drumm is Delivery and Product Director for COINS, with more than 17 years of experience implementing construction software systems and a BS in Applied Economics & Business Management from Cornell University.
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