In June I attended the National CFMA Conference in Las Vegas. It was a great opportunity to get updated on the state of the construction industry and learn about issues contractors are currently facing.
One popular topic of conversation was the recently issued revenue recognition standard and what it means for contractors. The general consensus among presenters was that there will be changes but the impact would not be significant. The new standard will require additional footnote disclosure and, in certain instances, may require separating contracts into separate performance obligations. However, the mechanics for recognizing revenue will remain widely unchanged as the cost-to-cost percentage of completion method will remain an acceptable method, albeit with the new name. With a calendar year 2018 implementation date for non-public companies, expect more industry specific guidance to come.