AGC Comments on Proposed Accounting Changes for Revenue Recognition

The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have released a draft Accounting Standards Update to create a single revenue recognition standard across multiple industries, including construction.  The new standard could have significant impacts on construction contractors, including increased administrative costs and effects on surety credit.  By introducing considerable subjectivity into the process, the new standard also will open the door to financial manipulation leading to less consistency and transparency in the financial reporting process in the industry. Although the October 22 comment period has passed, information about the proposal can be found here.  To read AGC's comments to FASB click here.