One of the most difficult and important concepts in the construction industry is accounting for revenue. It is likely the most important. Not far behind, leases. This course focuses on both.
With FASB Accounting Standards Codification® (ASC) 606, Revenue from Contracts with Customers, now in full effect, you need to understand the differences from previous recognition methods for contractors. The nuances and new concepts are critical for proper recognition. Take a deep dive into each of the five steps of revenue recognition from contracting to recognizing revenue. Understand what revenue is and how it is earned.
FASB ASC 842, Leases, also is critical for contractors. Many contractors lease equipment, warehouse space, other tools, etc. The new leasing model puts leases on the balance sheet. This is a significant change from the prior model. Work through the new guidance and follow examples to understand why and how to record a lease and its related expense.
When you complete this course you will be able to:
- Recall the details in the accounting for construction contracts in FASB ASC 606, Revenue from Contracts with Customers, including the appropriate accounting alternatives for construction-type contracts.
- Recall the details in the accounting for leases in accordance with FASB ASC 842, Leases.
- Five-step process for revenue recognition
- Contract acquisition costs
Gene Ristaino is a partner/member of Isdaner & Company, LLC, a local firm of 65 people in Bala Cynwyd PA (Philadelphia area) and is the director of accounting, auditing and quality control for the firm. Gene manages a diversified accounting practice (over 40 years of experience) specializing in the construction and real estate industries. He also provides consulting services for developers and contractors in cost certification and analysis, claim support and documentation, expert witness, business valuation and job cost system implementation and improvement. Gene has provided expert testimony and/or issued expert reports in numerous litigation support engagements involving real estate transactions, construction claims, family disputes and embezzlement cases. He has provided expert testimony in two Court appearances. He has also prepared construction contract claims, back charge reports, and damage reports in dispute litigation and arbitration. Gene is Accredited in Business Valuation (ABV) and Certified in Financial Forensics (CFF) certified by the American Institute of Certified Public Accountants (AICPA). Valuation and/or Litigation engagements include construction contractors; leisure transportation; travel and tour agencies; manufacturing; real estate investment limited partnerships and LLCs; specialty restaurants; and family limited partnerships. Cases have included dissenting stockholder disputes; buy/sell transaction prices; estate and gift tax issues; and owner disputes. Gene has attended the Business Valuation Course, and the Fair Value Forum developed by the AICPA. Gene has a Masters in Taxation (MT), concentrating in corporate taxation, with a specialization in the real estate and construction industries. Gene's diversified background includes a concentration in the governmental and not-for-profit auditing sectors, including HUD, Circular A-133 and the Single Audit, as well as healthcare, manufacturing, transportation, retail and service organizations. Gene is a national instructor for the American Institute of Certified Public Accountants (AICPA) and many state societies. He also lectures for many industry associations, and has authored numerous professional education programs, including several one-day seminars. Gene is a member of the American and Pennsylvania Institutes of Certified Public Accountants and currently serves on the Peer review and A&A Procedures committees for the Pennsylvania Institute of Certified Public Accountants. Gene is a team captain for the AICPA Peer Review Program, and has performed numerous peer reviews under the AICPA Standards. Gene is a former adjunct professor of tax law for the Masters in Taxation Programs for Villanova University and Philadelphia University. He received his undergraduate BS degree in accounting from Drexel University, and earned his Masters in Taxation from Villanova University.