It’s finally here: FASB issues new revenue recognition standard

The model for revenue recognition in construction is changing with the FinancialSBPQ0314_32_small
Accounting Standards Board (FASB) May 28, 2014 release of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). Since 2008, FASB and the International Accounting Standards Board (IASB) have been working jointly on developing a single principles-based model for recognizing revenue, with a goal of improving consistency of requirements, comparability of revenue recognition practices, and usefulness of disclosures.

Throughout the FASB process, NASBP, the Construction Financial Management Association (CFMA) and other interested organizations have been very involved in providing input on the impact of the new standard. The ASU eliminates all existing revenue recognition guidance under both U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), including industry-specific guidance, and significantly expands revenue recognition disclosures.