Revenue recognition continues to be a top compliance and advisory issue for CPAs in the construction industry. This session will dive into the complexities of ASC 606, including common pitfalls in contract modifications, variable consideration, and performance obligations. Real-world case studies will illustrate best practices for implementation and ongoing management. This session was recorded on March 25, 2025 for CalCPA'sConstruction Management Conference.
Learning Objectives
• Identify ASC 606's five-step revenue recognition model for construction contracts.
• Determine challenges in allocating revenue to performance obligations.
• Evaluate best practices for accurate financial reporting and compliance.
Major Topics
• Core Principles of ASC 606 in the Construction Industry
• Identifying and Defining Performance Obligations
• Contract Modifications and Change Orders under ASC 606
• Variable Consideration and Estimation Challenges
• Allocating Transaction Price to Performance Obligations
• Best Practices and Case Studies for Implementation and Compliance
