January/February 2015

Construction accounting update — Prepare now for potential revenue recognition changes

FASB has recently issued a new Accounting Standards Update that addresses revenue recognition under U.S. GAAP. The new rules contained therein are an attempt to standardize and simplify the revenue recognition process for customer contracts across different industries and geographic locations. The standard provides a road map for businesses to more clearly recognize contractual revenue on their financial statements via a five-step approach. But the article notes that there are still uncertainties, and explains how contractors must account for change orders under the standard. A sidebar explains that the new rules will likely require contractors to disclose more information than was typical in the past.

Read More
Industry forecast: Blue skies ahead

The clouds are finally starting to lift on the U.S. construction industry. Or so say economists from three large U.S. construction and building trade associations during a joint meeting this past August. This article reveals their findings, which foresee a vibrant environment for nonresidential construction spending and more moderate growth for the residential market.

Read More

Could a shareholder loan satisfy your surety?

For ambitious contractors, sureties can be difficult to please. But one strategy that may help is to execute a shareholder loan. Although a move like this has its risks, doing so may enhance a contractor’s capital standing expediently without pushing it into the complexity of outside financing. This article explains some of the nuts and bolts of shareholder loans, including the tax implications.

Read More
Construction Success Story — HR software helps track contractor’s growing workforce
Labor costs can make or break a project. This issue’s “Construction Success Story” profiles the owner of a midsize commercial construction company who was venturing into new territory with large, ambitious projects, but also finding HR challenges he wasn’t accustomed to. His financial advisor recommended carefully choosing and implementing an HR management system that would allow him to truly understand every facet of his company’s labor costs at any given time.
Read More
This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and accordingly assume no liability whatsoever in connection with its use. ©2015 • CONjf15