[timmyj]

Note
FASB ASC 606 has changed the accounting for construction contracts. Accounting for construction contracts will follow the five-step process, and most contracts will use the input method to measure revenue. The input method is similar to the percentage-of-completion approach. Contract accounting may impact other areas of the CPA Exam, such as accounting for changes in accounting principles and deferred taxes. It is possible to see questions in those areas that reference a company changing from a completed-contract to a percentage-of-completion approach. Please review this lesson as a supplemental lesson to changes in accounting principles and deferred taxes.

-The above is a note at the top of the lesson for “Accounting for Construction Contracts” in Wiley CPAexcel study guide. I am not quite sure how to interpret this message. Do we still account for construction contracts using percentage-of-completion or completed contract, or do we use the input method (it just says most contracts will use, not that construction contracts will use)?

[timmyj]

Does anyone know how this is tested currently for Q1 2019?

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