New revenue recognition for contractors: wasted or unproductive costs

Topic 606, Revenue from Contracts with Customers, of the Accounting Standard Codification has been discussed extensively for the past few years and while most discussions focus on the technical issues, I want to discuss application of the standard, particularly on how it affects the construction industry. Don’t miss: Accounting for payments and discounts to customers …

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A sigh of relief: accounting changes for leases

On July 17th, 2019, the FASB voted to give privately held companies until 2021 to follow the new lease standard, rather than having to implement it next year. Private companies can all let out a sigh of relief. The reasoning behind this decision comes down to the fact that changing from the old standard to …

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Revenue recognition for contractors: uninstalled materials

The new revenue recognition has been discussed extensively for the past few years and while most discussions focus on the technical issues, I like to discuss application of the standard, particularly on how it affects the construction industry. On a previous blog, I discussed contract fulfillment costs and how these costs are treated under the …

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Accounting for goodwill after acquisition

Over the years, the subsequent accounting for goodwill has been an area that has seen a lot of changes and our blog has tried to keep you up to date with all of these. Where do we stand now? First off, goodwill mainly arises from a business combination where the purchase price exceeds the fair …

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Expanded consolidation relief for private companies

Back in 2014, FASB initially provided variable interest entity (VIE) consolidation relief to certain common control leasing arrangements. While this was great as common control leasing arrangements were probably the most frequent occurrence that led to consolidation of a VIE, there has always been hope that this alternative would be expanded to all common control …

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Unclaimed property: a whole lot of money and no place to call home

What would you do with $1 billion? This astounding 10-digit figure is the approximate value of unclaimed property held by the State of Arizona and belongs to roughly one million current or former Arizona residents. Chances are one in seven of finding unclaimed property if you live in the Grand Canyon State! So, what exactly …

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3 Steps to a more efficient period close

When the end of the month rolls around, every accountant knows that it’s time to scramble. Closing out the previous month can be a hassle with filling out all the schedules, making the closing entries, correcting issues and checking to make sure nothing was missed. It can be a very time-consuming process, but there are …

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Bookkeeping services: when to hire a bookkeeper

Bookkeeping is the foundation for any successful company or business. However, for many business owners, it does not mean this task is any less mundane, confusing or time consuming and often, it is placed on the back burner behind other top priorities. While you may be thinking to yourself, “Yes, exactly!” – and understandably so …

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What can SOX do for nonpublic companies?

When you think about the Sarbanes-Oxley Act of 2002 – SOX – Section 404 what comes to mind? Large scale fraud that caused the act? Increased government regulation around financial reporting? Requirement of controls and the disclosure of the assessment of internal controls? One of the last words that might come to mind is efficiency. …

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Benford’s Law and the mysteries beneath the numbers

Accounting is centered on numbers. Every day accounting journal entries full of numbers are recorded, accumulating as each day passes. By year-end, the general ledger will contain hundreds of thousands of entries, if not millions. As we roll up our sleeves to perform the year-end close, we are tasked with making sense of it all …

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