Construction Contractors: Non-Revenue and Non-Lease Accounting Considerations
Non-revenue and non-lease accounting are as important as revenue recognition when accounting for construction contractors. You'll dive into these topics to gain basic knowledge in construction accounting.
Format
Online
NASBA Field of Study
Accounting
Level
Basic
CPE Credits
6
Author(s)
Robert Mercado
Availability
1 year
Product Number
CCACT24SSO
Construction accounting fundamentals
The construction industry stands out in its need to adhere to diverse accounting standards. Essential knowledge and key issues influencing the field are explored as you learn about the overall construction process through the following topics:
- Industry players
- Preparing cost estimates and bids
- Project management
- Contracts and modifications
Unique accounting issues for contractors
Various contractor expenses that affect job profitability need to be identified and examined to ensure accurate accounting of a company’s total spending and performance. You'll review this concept and other characteristics unique to contractors as you gather critical information and learn the implications for CPAs. Relevant topics include:
- Contractor financial statements
- Common disclosures
- Supplementary information
Working with a surety
Surety is an integral part of the construction process. You’ll take a detailed look at the benchmarks a surety might analyze in a contractor’s financial statements as well as the following topics:
- Types of surety bonds
- The surety process
- Surety underwriting considerations
- Warning signs for the surety
Who Will Benefit
New staff to experienced staff with construction clients.
Key Topics
- Types of contractors
- Non-revenue GAAP accounting for contractors
- Contractor financial statements
- Sureties and their place in the construction relationship
Learning Outcomes
- Recognize select characteristics that are unique to the construction industry and that have accounting, audit, tax, or consulting consequences.
- Identify the components of job costs incurred, the common categories into which the costs are divided, and the impact of both direct and indirect costs on the contractor.
- Recall the unique supplementary information normally included in the financial statements of a construction contractor.
- Identify the various financial benchmarks a surety or surety agent might analyze in a contractor’s financial statements to determine the amount of the contractor’s surety credit.
Group ordering for your team
2 to 5 registrants
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