Construction accounting update – New revenue recognition rules to “go live” soon
Abstract: For privately held companies, Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, is due to go live with annual reporting periods beginning after December 15, 2018. Contractors who follow GAAP need to be ready. This article covers how the rules will affect new construction, as well as renovation and installation projects. A sidebar looks at the important distinction between accounting rules and tax law.