Is construction accounting headed for a troublesome shake-up? A proposed new rule aimed at aligning financial reporting by construction firms with other industries could bring sweeping changes to long-held, generally accepted accounting principles. Critics warn the new rule could significantly raise administrative costs, open the door to financial manipulation and dampen surety credit. The Financial Accounting Standards Board (FASB), which is the designated private-sector organization in the U.S. that establishes financial accounting and reporting standards, and the International Accounting Standards Board have released a draft standard to create a single revenue-recognition standard across multiple industries, including construction. “The idea is
The growing need to collect, store and analyze the huge volumes of data collected from infrastructure project stakeholders is generating a new growth area for construction-sector firms, IT vendors and professionals.