The construction sector is uniquely affected by the guidance in ASC Topic 606, Revenue from Contracts with Customers because the new revenue recognition standard supersedes previous industry-specific guidance and will affect nearly every contract with a customer. When a contract is breached, these damages will be awarded to make up for the monetary loss. While some companies have adopted ASC Topic 606 prior to the recent issuance of ASU 2020-05, which deferred the effective date, others have yet to implement the new accounting standard. For public companies, the new standard is required to be implemented in 2018, and 2019 for private companies. By Becky Watson, CPA, Audit Manager ASL Construction Group The end of the year is coming fast and with it comes the requirement to adopt FASB ASC Topic 606 Revenue from Contracts with Customers by all calendar year-end private companies (this standard was applicable to public companies for calendar year 2018). liquidated damages provision that is ruled a penalty by the court will not be enforced (Williston and Thompson, 1938). Liberty Technical Update 6 - Liquidated Damages The Enforcement of Liquidated Damages and Insurance Implications Most major construction and engineering projects are usually complex, multi-party and undertaken under strict 2019 Emerson Form 10-K 1PART I Item 1 – Business Emerson (“the Company”) was incorporated in Missouri in 1890, and has evolved through internal growth and strategic acquisitions and divestitures from a regional manufacturer Comments Due: Revenue Recognition (Topic 605) Revenue from Contracts with Customers (including proposed amendments to the FASB Accounting Standards Codification®) Revision of Exposure Draft Issued June Geisinger Clinic v. Di Cuccio - 414 Pa. Super. In any action commenced prior to or on or after May 14, 1947 to recover unpaid minimum wages, unpaid overtime compensation, or liquidated damages, under the Fair Labor Standards Act of 1938, as amended [29 U.S.C. A few examples of clauses within contracts that may impact revenue recognition practices under the new standard include warranty provisions, termination for convenience, liquidated damages, progress We respectfully advise the Staff that estimates of net contract revenues (i.e., transaction prices) for sales of solar power systems and EPC services may include several forms of variable consideration, such as performance incentives, liquidated damages, and other payments to customers. ASC 606 Deep Dive Step 4: Allocating Transaction Price to the Performance Obligations Biggest Impacts : Software, Telecommunications With considerations including standalone selling price, allocating discounts and variable consideration, and changes in the transaction price, there are certain pitfalls in allocating price to each obligation. &RQQRU *URXS _ 6LOLFRQ 9DOOH\ 6DQ )UDQFLVFR 6DOW /DNH &LW\ %RVWRQ 1HZ