How New Accounting Standards Will Affect Contractors’ Financial Statements
Long-anticipated changes to U.S. generally accepted accounting principles for revenue recognition recently went into effect for public companies. Changes to revenue recognition for private companies as well as changes to lease accounting for all entities soon will go into effect as well. The new lease accounting and revenue recognition standards significantly affect many contractors’ financial statements – and thus affect their credit and bonding capacities as well. In this article, two Crowe construction specialists tell you what to look for and what has changed.