Accountants and practitioners in the construction industry face unique challenges, especially with financial reporting of multi-year projects. How do you accurately compute expenses incurred to date, project final expenses and assess how change orders impact profitability? This self-study webinar presents best practices for resolving these and other questions including:
- How should contracts be reported on an interim and annual basis?
- How is the percentage of completion computed?
- How are contract losses treated?
- How do tax rules differ from GAAP?
To provide the accountant or auditor with the specialized knowledge to resolve problems unique to the construction industry. This self-study webinar shows how to maximize financial reporting results within GAAP and avoid pitfalls that can weaken financial statements and imperil financing and bonding. You'll be equipped to calculate, account for and report all contract situations and deferred taxes.
- Overview of accounting and financial reporting issues (ASC 910)
- How to avoid problems that can impair financing and bonding
- GAAP/tax differences
- Methods allowed by GAAP
- Percentage of completion calculation
- Revenue recognition on long-term construction projects
- Accounting for change orders and claims
- Accounting for contract changes and contract "fade"
- Job costing
- Job schedules in financial statements
- Analysis of working capital
- Overhead allocation
- Calculating and reporting deferred taxes
- Implementation of ASC 810 (FIN 46R) and ASC 740 (FIN 48)
- Examples and case studies
• Identify the formats contracts can take
• Identify the typical operating cycle for contractors
• Recognize examples of construction-related current assets and current liabilities
• Identify permissible examples of offsetting
• Recognize types of direct and indirect costs
• Identify the inputs used to calculate percentage of completion
• Recognize the preferred method under GAAP for calculating changes in estimates
• Identify the definition of profit fade
• Recognize the required construction industry disclosures
• Identify the definition of risk per ISO 31000
• Recognize “red flags” in the construction industry
• Recognize reasons companies form joint ventures
• Identify which accounting standard covers collaborative arrangements
• Identify the definition of collaborative arrangements
• Identify situations when the equity method of accounting would be used vs. consolidation of two entities
• Recognize the definition of the IRS 20 factor test
• Recognize the preferred method for tax treatment of long term contracts
• Recognize the appropriate record retentions length for different types of documents
• Identify internal controls needs of construction companies
• Identify the mandates of ASU 2015-03
• Identify characteristics of ASU 2017-04
• Recognize the appropriate treatment of capitalized implementation costs under ASU 2018-15
• Recognize the topic covered by 2017-04
• Recognize the ASU that requires most leases to be capitalized on the balance sheet
• Recognize the ASU that simplifies the presentation of debt issuance costs
• Identify the ASU that provides technical corrections and improvements to financial instruments
• Identify the ASU that removed the requirement to disclose the amount and reason for transfers between Level 1 and Level 2
• Recognize the topic covered by ASU 2016-18