March 10, 2020
Construction Dive quoted Partner James Miller in an article about SEC investigations of improper revenue recognition on public company financial statements.
Construction Dive
By Kim Slowey
Excerpt:
“Specific to construction,” he said, “the contractor’s ability to properly estimate a job is a basis for recognition of revenue based on the percentage of completion or consistent with overtime recognition, where there is not a significant reversal of revenue in the future. In the case of construction estimates, constant profit changes challenge a company’s ability to properly estimate a job, and, in turn, would not support the method of recognizing revenue based on the percentage of completion or over-time.”
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