This program explains and illustrates special accounting and auditing issues related to
the construction industry, contractor specific disclosure rules, and current accounting
and auditing developments. On the tax side, the program examines the similarities and
differences of tax and financial reporting for percentage of completion and completed
contract method, and other permitted methods of accounting. Adjustments for the
“look-back” rules will be considered under various scenarios. Practical application is
provided through audit program examples and financial statement presentation and
disclosure issues.
DESIGNED FOR
CPAs in public practices and in construction businesses who prepare tax returns, are responsible for financial statements, and provide tax and financial advice to construction contractors.
BENEFITS
- Understand the definition of “long-term contract”
- Present a contractor’s financial information in accordance with U.S GAAP
- Calculate a contractor’s bonding capacity
- Calculate “look-back” adjustments to taxable income
- Apply IRC Secs. 263A and 460 to cost accumulation
- Efficiently audit a contractor
- Plan financial and tax transactions to assure maximum bonding capacity
- Advise contractors on how business decisions affect financial statements and tax
returns
- Comply with new tax and accounting rules
HIGHLIGHTS
Accounting
- Over and under billings
- New revenue recognition standard and new lease standard for contractors
- Consolidation of variable interest entities
- Deferred income taxes
- Disclosure of risk and uncertainty
- Audit program for contract related items, applying risk analysis to contractors’ operations, and required disclosures
Tax
- Cash versus accrual
- Accounting methods available to small contractors
- Percentage of completion verse completed contract
- “Look back” rules
- AMT
- Sec. 460 regulations on accumulation of contract costs
- Homebuilder/developer regulations, qualified domestic production deduction
- IRS Audit Techniques Guide for the construction industry
COURSE LEVEL
Intermediate
PREREQUISITES
None
ADVANCE PREPARATION
None
ADDITIONAL NOTES
Course materials will be distributed electronically. To access, visit your
My Events page. Download to your laptop or tablet prior to your seminar. Handouts are added as received.