APPENDIX A
(FASB ASC TOPIC 606)
Revenue from Contracts with Customers
CONSTRUCTION CONTRACTOR IMPACT/CONSIDERATIONS
The Five-Step Approach
Topic 606 establishes a five-step approach for recognizing and measuring revenue.
STEP 01 STEP 02 STEP 03 STEP 04 STEP 05
Identify customer
contracts. Identify performance
obligations. Determine the
transaction price
(including variable
consideration). Allocate the transaction
price to performance
obligations. Recognize revenue
when or as performance
obligations are satisfied.
CONTRACTOR’S REMINDER CHECKLIST | 3