The ASC 606 transition for construction contractors: Recognizing revenue
Revenues and gross profit are recognized each period based on the construction progress, in other words, the percentage of completion. Construction-in-progress are generally not classified as inventory as it would not be in-line with IAS2.9 (Inventories to be stated at lower of cost or NRV). Generally accepted accounting principles (GAAP) require that revenue percentage of…
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