Construction Executive published an article by Barry Fischman and Michael D’Addio on the new income recognition standard for construction contractors.
Barry Fischman, Partner, Assurance Services & Michael D'Addio, Principal, Tax & Business Services
The 9th Circuit Court’s review of how construction contractors should recognize income had a somewhat surprising outcome. The key question being considered was: When should developers recognize income under the completed contract method? Is it when the entire project is complete, is it on percentage of completion, or is it upon the sale of each individual home sold?