Construction Contractors Revenue Recognition Task Force 

    AICPA Revenue Recognition Task Forces are charged with developing revenue recognition implementation issues that will provide helpful hints and illustrative examples for how to apply the new Revenue Recognition Standard.

    Task Force Members:

    • Mike Sobolewski, PricwaterhouseCoopers LLP (Co-Chair)
    • Tim Wilson, BKD LLP (Co-Chair)
    • John Armour, CBIZ
    • Reed Brimhall, URS
    • Michael Desmormeaux, Grant Thornton LLP
    • Louis Torres, BDO LLP
    • John Weber, McGladrey LLP
    • Bill Patt, Mortenson Construction
    • Michael Samson, KPMG LLP
    • Geoff Sanders, Jacobs
    • Gary Smalley, Fluor
    • Alison Spivey, Ernst & Young LLP
    • Darrin Weber, IMA
    Staff Contact: Fred Gill,


    Below is a list of potential revenue recognition implementation issues identified by the Construction Contractors Revenue Recognition Task Force. The list will be updated as the task force continues it discussions. Full revenue recognition implementation issues will be posted below for informal comments after review by the AICPA Financial Reporting Executive Committee (FinREC).

    Issue # Description of Implementation Issue
    1 Ability for a contract to be verbal or implied
    2 Combining contracts
    3 Loss of segmentation guidance
    4 Change orders (including unpriced change orders)
    5 Claims
    6 Separately accounting for multiple performance obligations
    7 Impact of constraint for variable consideration
    8 Estimation methods (most likely amount vs. probability weighted)
     9 Customer credit risk threshold
     10 Time value of money (e.g., retainage)
    11 Customer furnished materials/equipment (Gross vs. Net)  
     12 General allocation issues  
     13 Acceptable measures of progress and examples of when use is appropriate
     14 Consideration of existing Alternative A and B concepts
    15 Accounting for service contracts  
     16 Wasted materials  
     17 Treatment of contract costs under various recognition measures  
     18 Pre-contract costs including amortization  
     19 Examples of contract costs that qualify for capitalization
     20 Accounting for warranties  
     21 Options
     22 Impact to proportional consolidation guidance
     23 Differences between current BEEC/CEEB and proposed net contract position presentation
     24 Disclosures
     25 Transition Issues  
     26  US GAAP vs. IFRS differences


    Draft Revenue Recognition Implementation Issues included for informal comment, when available, will be listed below.

    Respondents should submit any comments including the implementation issue number to by the dates noted below:

    Issue # Comment Due Date

    The Construction Contractors Revenue Recognition Task Force recommends the following AICPA products for current revenue recognition issues:
    News and Other Resources
    • In this blog post, Reed Brimhall and Michael Sobolewski, co-chairs of the Construction Contractors Revenue Recognition Task Force, outline their top concerns regarding the new standard.

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