Revenue Recognition Resource Center
The deadline for non-public business entities to adopt the new accounting guidance in revenue recognition standards (ASC 606) for contracts with customers is here. This new standard will be effective with reporting periods beginning after December 15, 2018 (calendar 2019) and will require retrospective application to the prior accounting period. Effectively, the new standard will change the method of recognizing revenue from cost-to-cost percent complete to percent physically complete. While the majority of companies have started analyzing the impact of the new standard, few have taken the next steps toward implementation.
To help you prepare for the new revenue recognition standards, Dannible & McKee is pleased to present our Revenue Recognition Resource Center. Below are several tools, guides and articles to help with your company’s revenue recognition.
Tools and Guides:
Retainage: Retention Receivable Guidance
The question many experts have regarding retainage under ASC606 is whether retention receivable is to be presented as an account receivable or a component of contract asset. ASC Section 606 requires retainage to be included in contract assets and liabilities until all of the performance requirements are completed by the entity. The final determination of classification is to be based on a careful review of the contract terms, the contractor’s historical experience of collection, and that all costs related to the retention amount are included in the estimated costs to complete amount included in the work in progress schedule.
This guide will help you properly classify your contracts’ retention receivables.
- Five Key Issues for Revenue Recognition Implementation
- Is Your Company Ready to Implement the New Revenue Recognition Standards?
- Revenue Recognition – Accounting for Fulfillment Costs
- Revenue Recognition – Accounting for Uninstalled Materials
- Practice Considerations for Implementation Revenue Recognition