The core principle for the new revenue recognition standard is to understand when and how much revenue should be recognized for goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, an entity will have to estimate revenue using variable consideration for either an “expected value” or “most likely” method, considering both the likelihood and the magnitude of the revenue reversal while considering multiple factors. This session will focus specifically on the construction industry and include an overview of estimating variable consideration from a construction claims perspective considering the specific pitfalls, pros, and cons for unapproved change orders, disputed work, and claims.
Understand new revenue recognition standard as it relates to unapproved change orders, disputed work, and claims.
How to evaluate unapproved change orders, disputed work, and claims.