In June 2010, the Financial Accounting Standards Board issued its Exposure Draft, Revenue from Contracts with Customers.
If this Exposure Draft is adopted, it could have a negative impact on contractors� financial statements and the percentage-of-completion method, as we know it, would largely disappear. At a minimum, it will make financial reporting more reliant on subjective decisions that will vary from contractor to contractor. In addition, financial performance will appear inconsistent, since revenue won�t be recorded until the project is transferred to the owner. As a result, financial institutions and bonding agents may misread financial information from construction companies under the new standard.