Revenue recognition: Key considerations for the construction industry
RECORDED WEBCAST |
Join RSM we share our insights on how the new revenue recognition standard (ASC 606) affects the construction industry.
All construction companies that prepare their financial statements in accordance with U.S. generally accepted accounting principles will be affected by the new guidance. While the degree to which a particular contractor’s revenue will be affected depends on its own facts and circumstances, every company will be significantly affected by the disclosure requirements in the new guidance because they substantially increase the volume of revenue-related information disclosed in the financial statements.
Under the new guidance, construction companies will need to evaluate whether any changes are needed to their current revenue and financial reporting processes and systems, which will require the involvement of more than just those involved in the accounting function.