Revenue Recognition: Uninstalled Materials

Kathleen Baldwin, CPA, CCIFP
Executive Director

“How to correctly address the topic of uninstalled materials has been a hot subject for our member firms. We are excited to bring you practical applications of this new Revenue Recognition standard.”

The new revenue recognition standard (ASC 606, Revenue from Contracts with Customers) affects construction companies in unique ways, particularly in the area of purchased material. How a contractor will account for these costs under the new standard depends on a variety of factors, including how the material is classified, when the customer obtains control of the material, and whether or not the material is installed, designed and manufactured by the contractor. Sections in this publication include:

  • Determining the classification of purchased material
  • Material job cost practice
  • Applying the transfer of control concept to materials
  • When to record assets for costs incurred
  • Accounting for uninstalled and installed materials
  • Accounting for goods designed and manufactured by the contractor
  • Measuring progress

Submit the form below to download the in-depth publication (PDF format) of the Practical Aspects of Uninstalled Materials.

As always, reach out to a CICPAC member firm near you with questions!

Download Uninstalled Materials

  • Download our specialty paper covering Revenue Recognition: Uninstalled Materials to learn more about how this specific topic is handled with the new standards. As always, reach out to a CICPAC member near you for further guidance.