Revenue Recognition: Internal Process for Drafting ASC 606-Compliant Construction Contracts
Creating guidelines for drafting compliant contracts, including contracts with variable consideration, is critical for construction companies.
These guidelines should be developed with input from every department involved in the process, including accounting, finance, pre-construction, project management, IT and HR. The team should work together to create decision trees/checklists that ensure all contracts comply with ASC 606.
To help you stay in compliance with revenue recognition standards, save this Construction Issue Sheet.