Under the ASC 606 revenue recognition standards, a performance obligation is a promise in a contract with a customer to transfer to them either (a) a distinct good or service (or a bundle of distinct goods or services) or (b) a series of distinct goods or services that are to a large extent the same and have the same pattern of transfer to the customer.
The construction industry faces a persistent labor shortage in early 2025, with an estimated 439,000 additional workers needed. Contractors struggle to find skilled labor, leading to rising wages, project delays, and cost increases. Workforce development and immigration policies will be key to addressing this challenge.
Read MoreLearn effective overhead allocation in construction to improve cost control, financial reporting, and decision-making. Discover best practices, allocation methods, and the role of technology to optimize profitability and streamline operations in this crucial aspect of construction accounting.
Read MoreExplore the critical differences between direct and indirect labor in construction projects, focusing on their impact on project costing, financial analysis, and strategic decision-making. Understand overhead allocation methods and enhance your construction accounting practices for better profitability.
Read MorePresident Trump’s second term will shape the construction industry with policies focused on infrastructure spending, tax reform, and streamlined permitting. Challenges like labor shortages and material costs remain, but initiatives like the Department of Government Efficiency (DOGE) aim to reduce bureaucracy and drive transformative projects.
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