- In this series of insights, we illustrate the critical new concepts of each element of the revenue recognition standard with construction industry-specific scenarios so you can begin to assess the impact it will have on your business.
- Contractors will need to provide qualitative and quantitative information regarding its contracts with customers, the estimates and judgments the contractor used to measure its revenue, and the nature of any assets recognized related to the costs of obtaining the contracts.
- Construction contractors should be aware of a number of other unique accounting and reporting items that may or may not differ from existing guidance under U.S. GAAP.
- ASC 606 requires additional consideration and documentation related to the transfer of control, including whether the transfer of control occurs over time or at a point in time.
- The new standard requires additional consideration and documentation of the standalone selling price or when the standalone selling price is not observable, when variable consideration is part of the transaction price, and when there are changes in the transaction price after contract inception.