Financial reporting for contractors – Is the latest accounting framework for you?

Description

Abstract: For construction companies, the complex rules involved with Generally Accepted Accounting Principles often don’t provide much guidance that’s of particular interest or use — especially if the contractor never expects to go public or be acquired by a publicly traded company. To accommodate the simpler financial reporting needs of smaller private companies, the American Institute of Certified Public Accountants has introduced the “Financial Reporting Framework for Small- and Medium-Sized Entities,” or FRF for SMEs. This article lists some key financial reporting areas affected by the framework, while a sidebar offers a checklist of “good fit” criteria to help contractors judge whether it’s right for them.