Christopher Iannuzzi

Director, Construction
(248) 641-0005

Clients / Friends,

It is hard to believe the industry has been grappling with the proposed Revenue Recognition changes for over nine years. And yet, here we are. In that period, we have seen extensive rewrites from the initial proposed guidance to where we are today. Following an outcry from the credit community, construction contractors and, of course, the construction CPAs, we were able to influence the incoming model to a point of comparability between the periods before and after adoption. In other words, percentage of completion (or something similar to it) is still here.

After close to three years of brainstorming, discussions and debate, research, collaboration, drafting and reviewing, this publication is here for your use. It has been edited by the best in the industry, it is your “go to guide” for construction CPAs. This guide tackles the issues that are most pressing to construction companies, as they drive through 2018 and begin to understand the implications of the new standards.

Below is a highlight, quick-scan overview of the issues. Download the full guide by submitting the form below.

  • Download our Implementation Guide to learn more about the standards and how they may affect your company.

Overview of New Revenue Recognition Standard: ASC 606

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Codification® (ASC) Topic 606, Revenue from Contracts with Customers. Topic 606 changes how most organizations are required to recognize revenue under US generally accepted accounting principles (GAAP)—specifically contracts with customers. This new standard will be effective January 1, 2019 for non-public companies.

New Concepts – You may find yourself asking: What’s a performance obligation? What’s variable consideration? How do I record waste? How do we account for warranties? What do I do with uninstalled materials and procurement costs? > Download our Terminology & Concepts Guide

Iannuzzi Manetta professionals can answer all those questions for you.  We are a dedicated thought leader in this arena, working with our affiliates in the construction industry, and have co-authored a 50-plus page implementation guide on this new standard (available upon request – be sure this links to the contact form).

The new standard has been commonly broken down into a 5-step process.

Step 1 – Identifying the Contract with the Customer

Step 2 – Identifying the Performance Obligation in the Contract

Step 3 – Determining the Transaction Price

Step 4 – Allocating the Transaction Price to Performance Obligations in the Contract

Step 5 – Recognizing Revenue When (or as) the Entity Satisfies Each Performance Obligation

The deadline is steadily approaching – contact Chris Iannuzzi, CPA at or reach out to your Iannuzzi Manetta advisor to help your company identify and implement necessary changes.