A new set of accounting standards required for year-end 2019 will affect how commercial construction contractors report their revenue. With a concern that many local contractors are not aware of how the changes will affect their financial statements required for banking and bonding, Shavell & Company, P.A. has put together a two-step informational seminar series to equip owners and financial officers to be prepared for the new accounting rules.
According to president Rich Shavell, the Financial Accounting Standards Board (FASB) which oversees the Generally Accepted Accounting Principles (GAAP) for financial statements has unified its reporting standards, which affects privately owned contractors.
“If a contractor is slow to transition to the new standard, it may affect the company’s opportunity to get bank loans, bonding, and to be pre-qualified for government bidding programs, because most all of these types of users of financial statements require GAAP statements,” says Shavell.
Specifically, the Percentage-of-Completion Method used for financial statements for the last 35 years has technically been repealed. The standards have new rules affecting unpriced change orders, performance obligations, contract pricing and costs, and more.
Shavell, who has specialized in accounting and taxes for the construction industry for the last 30 years, said, “These changes can not only impact the complexity and credibility of a contractor’s financial statements, but could also increase administrative costs, change IT requirements, taxes and operations. It’s important that contractors and their financial officers know the facts before the end of this year.”
Shavell & Company will present a two-hour Step 1 Overview seminar about the new revenue recognition standards on May 22 in Boca Raton and June 12 in Doral. The full day Step 2 “How To” seminar will include tools and guidance for implementation, and will be held on July 10 in Boca Raton and July 16 in Doral.
- Boca Raton May 22 Overview and July 10 How-To: Farmer’s Table Restaurant, 1901 N. Military Trail, Boca Raton, FL 33432
- Doral June 12 Overview and July 16 How-To: InterContinental at Doral Miami, 2505 N.W. 87th Avenue, Doral. FL 33172.
Registration is underway at www.shavell.net/beready, or call 561-997-7242.