NOTE: This course description has been revised and reflects updates for 2021. If you have any questions, please contact email@example.com.
This seminar explores the Part II – Accounting Standards for Private Enterprises (ASPE) that are applicable to the construction industry in a practical manner The seminar covers the disclosure requirements and other issues specific to construction contracts.
As the construction industry continues to become a larger part of the Canadian economy, a similar increase in the level of complexity of industry practices has been observed. This leaves practitioners with the challenge of applying the standard in this ever-changing landscape. This half-day course is designed to enable the practical application of the ASPE standard to construction entities. Emphasis will be placed on the application of revenue recognition and other accounting policies using specific scenarios and practical illustrative examples.
For the purposes of this seminar, construction industry includes construction contractors with various activities. A construction contractor may engage in various activities as a general contractor or subcontractor, and does not necessarily have the ownership of real estate, but is acting as a vendor to the builders, developers and landlords that have direct or indirect ownership of the real estate.
By the end of this course, participants will be able to:
- Identify common industry practices and accounting policies.
- Interpret financial statement presentation and disclosure requirements.
- Analyze the effects of estimates and uncertainty in the application of revenue recognition.
- Distinguish the appropriate application of the percentage of completion and completed contract methods of revenue recognition.
Topics covered in this course include:
- common business practices in the construction industry
- revenue recognition under the percentage of completion method
- disclosure requirements under the percentage of completion method
- revenue recognition under the completed contract method
- unbilled receivable and deferred revenue
- holdbacks receivable and payable
- other financial reporting implications:
- change orders
- equipment, tools and other inventory
- warranty liabilities
- professional contracts – retail work-in-progress
- claims and contingencies
- familiarity with CPA Handbook – Accounting Part II ASPE
- knowledge of the construction industry business practices
Who Will Benefit
Accounting professionals involved in the preparation of private enterprise financial statements, as well as practitioners who serve private clients, in the construction industry.