The new standards related to Revenue Recognition from Contracts with Customers – Accounting Standards Update 2014-09; Accounting Standards Codification 606 (ASC 606) are effective for fiscal years beginning after Dec. 15, 2018 for private companies. Construction contractors earn the vast majority of their revenues based on contracts with customers. Therefore, most contractors will be impacted by this new standard in some manner but many still are not sure how much it will impact them and time is running out.
If you have yet to do a preliminary assessment of what impact ASC 606 will have on your business, get started with this questionnaire. Indicate a yes or no answer for each question, hit submit, and you will receive a preliminary impact assessment.
Remember, regardless of the level of impact, all organizations issuing a GAAP basis financial statement are required to update processes and internal controls over operations and financial reporting to comply with the new accounting standard.
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