One of the most difficult and important concepts in the construction industry is accounting for revenue. It is likely the most important. Not far behind, leases. This course focuses on both.
With FASB Accounting Standards Codification® (ASC) 606, Revenue from Contracts with Customers, now in full effect, you need to understand the differences from previous recognition methods for contractors. The nuances and new concepts are critical for proper recognition. Take a deep dive into each of the five steps of revenue recognition from contracting to recognizing revenue. Understand what revenue is and how it is earned.
FASB ASC 842, Leases, also is critical for contractors. Many contractors lease equipment, warehouse space, other tools, etc. The new leasing model puts leases on the balance sheet. This is a significant change from the prior model. Work through the new guidance and follow examples to understand why and how to record a lease and its related expense.