The construction industry was dealt a difficult hand when the new revenue recognition standard was first introduced in 2014. As contract-based businesses, they had to take a close look at almost all their revenues streams and challenge some long-held assumptions in order to comply with the new accounting standard. Since many construction contracts span multiple reporting years, the process was especially daunting. Now that the revenue recognition standard is in effect, we wanted to take a step back and see how construction companies have been faring under this new accounting system. To help clients, prospects and others in the Atlanta construction industry with compliance, Wilson Lewis has compiled a list of key areas of concern.
Although the standard is currently in effect for both public and private entities, the Atlanta construction industry is constantly pivoting their strategies and making changes to overcome challenges. In the implementation process there have been a few challenges, including:
Contact Us
While the items listed above are the most common challenges faced there are several others to monitor including accounting for contract modification, estimating variable considerations and assessing the ability to collect for a multi-year contract. Revenue recognition can be a challenge to implement but with the right professionals and resources on your side, it doesn’t have to be. If you have questions about revenue recognition, a specific construction tax or accounting issue, Wilson Lewis can help! For additional information call us at 770-476-1004 or click here to contact us. We look forward to speaking with you soon.
On December 3, 2024, a federal court temporarily blocked enforcement of the Corporate Transparency Act…
The Department of Labor (DOL) recently appealed a federal ruling that overturned the previously established…
With the election results finalized, business leaders are preparing for potential shifts in tax policy…
On October 3, 2024, the Financial Crimes Enforcement Network (FinCEN) released updated Frequently Asked Questions…
Depending on your location, the end of the year can mean construction season is winding…
As the end of 2024 approaches, now is the time for individuals to fine-tune their…