Tag Archives | GAAP

Loss Provisions – When to Accrue a Loss

We all agree revenue should be recognized: Fixed Price Revenue is recognized when deliverables are met or on a percentage-of–completion basis, Cost Reimbursement revenue is recognized when the work is performed. However, do you know when to recognize a foreseeable loss on the contract? If a loss on the contract is expected or known, regardless […]

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Revenue Recognition on Materials Purchases – Gross or Net?

Government Contracts often include tasks requiring the Contractor to make purchases on behalf of the Government Customer. It’s important in these circumstances to consider whether the Contractor is, in reality, acting as an Agent. That conclusion might impact how the revenue for such activity is to be reported under U.S. GAAP – gross or net. […]

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