# ASC Topic 910: Contractors—Construction Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/910/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T02:09:00.435Z to 2026-09-10T02:09:53.961Z Record version: sha256:ec08c3c4b7bd611d4505dfeb3c57e5e13ef32f27b77efa52a96c8a101b55cb68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 910 (Contractors—Construction) supplies incremental industry guidance for entities performing construction-type contracts—unique property built to a customer's specifications, usually at the customer's site, under bid or negotiated fixed-price, unit-price, cost-type, or time-and-materials contracts (910-10-15-1 through 15-4). Since ASU 2014-09 superseded most of its revenue guidance, revenue is now recognized under Topic 606 (910-10-60-1), leaving the Topic to address contract costs and presentation: equipment costs allocated to specific contracts under the "use rate" theory (910-20-25-1 through 25-3; 910-20-30-1), small tools charged as consumed with salvage credited to contract costs (910-20-25-4; 910-10-35-1), noncurrent classification of long-term retainages (910-10-45-1), and proportionate gross presentation for equity-method investments in unincorporated construction or extractive-industry entities (910-10-45-4). The unifying idea is that costs and revenues are accumulated by individual contract over more than one period, so cost allocation and liquidity-focused disclosure (unapproved change orders and claims, progress payments netted against costs, contract durations, retainage collection timing) carry the accounting weight. Source downloaded (UTC): 2026-09-10T02:09:00.435Z to 2026-09-10T02:09:30.402Z Record version: sha256:e4487fa7a4b91326764cb45ec7f17271ab0a481887791a58669c8c194384d8e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-10: Contractors—Construction — Overall ### Machine-generated study aids ```json { "summary": "ASC 910-10 is the Overall subtopic of the Contractors—Construction Topic, providing incremental industry-specific guidance for entities that perform construction-type contracts (work built or improved on tangible property to a customer's specifications, usually at the customer's job site under a unique, bid or negotiated contract). Most of its former revenue guidance was superseded by ASU 2014-09, so revenue recognition now follows Topic 606; what remains addresses small-tool depreciation, classification of retainages, proportionate gross presentation for construction joint ventures, and industry disclosures. Entities in scope must also comply with all other applicable GAAP not addressed here (910-10-15-1).", "key_points": [ "The Topic supplies only incremental industry guidance for contractors performing construction-type contracts; such entities must also comply with all otherwise applicable standards (910-10-15-1 through 15-2).", "Defining industry characteristics: contracts are bid or negotiated for a unique property built to customer specification at the customer's site, priced on estimated cost plus desired margin, often bonded, with costs and revenues accumulated by individual contract over more than one period (910-10-15-3 through 15-4); the four pricing types are fixed-price/lump-sum, unit-price, cost-type, and time-and-materials.", "Depreciation of small tools carried in fixed assets may be charged either to overhead or to specific contracts (910-10-35-1); see 910-20-25-4 for recognition of small tools.", "Retainages not collectible within one year (or within the operating cycle if longer) are classified as noncurrent on a classified balance sheet (910-10-45-1).", "Proportionate gross financial statement presentation of an equity-method investment in an unincorporated legal entity is permitted only when the investee is in the construction or an extractive industry (910-10-45-4; 810-10-45-14).", "Disclosures include the method of reporting by affiliated entities, the range of contract durations if the operating cycle exceeds one year, and liquidity characteristics of specific assets and liabilities if the operating cycle exceeds one year or an unclassified balance sheet is used (910-10-50-2 through 50-3).", "For receivables maturing after one year, disclose amounts (and, if practicable, amounts by year) and interest rates; for billed but unpaid contract retainages, disclose the amounts, the portion expected to be collected after one year, and if practicable the years of collection (910-10-50-6 through 50-7); revenue recognition itself is governed by Topic 606 (910-10-60-1)." ], "categories": [ "Industry-specific", "Presentation", "Disclosure", "Revenue" ], "audience_level": "intermediate", "student_note": "Post-ASU 2014-09 the old percentage-of-completion machinery lives in Topic 606, so the common mistake is treating ASC 910 as the revenue standard for contractors; what survives here is mainly balance-sheet classification (retainages), the construction-industry exception permitting proportionate gross presentation of unincorporated joint ventures, and industry disclosures.", "related_topics": [ "606", "910-20", "605-35", "810-10", "235-10", "340-40" ], "key_concepts": [ "construction-type contracts", "retainage", "operating cycle", "incremental industry guidance", "proportionate gross presentation", "construction joint venture", "small tools", "contract receivables disclosure" ] } ``` Source downloaded (UTC): 2026-09-10T02:09:00.435Z to 2026-09-10T02:09:00.435Z Record version: sha256:bf5a5517ad7921fa8ebb77e3f197c4161ca67e2920fcc6997f529ea1d60da9dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/910/10/#00-status) SEC content: no ##### [910-10-00-1](https://asc.understandingaccounting.org/asc/910/10/#910-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:00.435Z to 2026-09-10T02:09:00.435Z Record version: sha256:158004f1546453260cae84fb0988da67e4e3493b836e829ce3aca8c715efe99f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
ContractsAddedAccounting Standards Update No. 2014-0905/28/2014
Cost-Type ContractsAddedAccounting Standards Update No. 2014-0905/28/2014
Lump-Sum ContractAddedAccounting Standards Update No. 2014-0603/14/2014
RevenueAddedAccounting Standards Update No. 2014-0905/28/2014
Time-and-Materials ContractsAddedAccounting Standards Update No. 2014-0905/28/2014
Unit-Price ContractsAddedAccounting Standards Update No. 2014-0905/28/2014
910-10-05-2AmendedMaintenance Update 2019-01 (PDF)01/08/2019
910-10-05-2AmendedAccounting Standards Update No. 2014-0905/28/2014
910-10-15-4AmendedAccounting Standards Update No. 2014-0905/28/2014
910-10-15-4AmendedAccounting Standards Update No. 2014-0603/14/2014
910-10-35-1AddedMaintenance Update 2019-01 (PDF)01/08/2019
910-10-45-1 through 45-4
AddedMaintenance Update 2019-01 (PDF)01/08/2019
910-10-45-3SupersededAccounting Standards Update No. 2014-0901/08/2019
910-10-50-1 through 50-7
AddedMaintenance Update 2019-01 (PDF)01/08/2019
910-10-60-1AmendedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T02:09:04.567Z to 2026-09-10T02:09:04.567Z Record version: sha256:1db8549f2d2895b3d4123ef0c260218a1ee4cd50442fdfbcac45606a16153ed0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/910/10/#05-overview-and-background) SEC content: no ##### [910-10-05-1](https://asc.understandingaccounting.org/asc/910/10/#910-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:04.567Z to 2026-09-10T02:09:04.567Z Record version: sha256:ba340254a681538192e581b4b801b9bab416718854c8e54a77df7fe9058a7ed9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Contractors—Construction Topic provides incremental industry-specific guidance on the application of generally accepted accounting principles (GAAP) in accounting for the performance of contracts for which specifications are provided by the customer for the construction of facilities or the production of goods or for the provision of related services. ##### [910-10-05-2](https://asc.understandingaccounting.org/asc/910/10/#910-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:04.567Z to 2026-09-10T02:09:04.567Z Record version: sha256:a8108bc1a642a7b57633a98ddd086964cf2e546485a99be296a0616953124942 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic includes the following Subtopics: 1. a Overall 2. b Contract Costs 3. c [Subparagraph superseded by Maintenance Update No. 2019-01.](https://asc.understandingaccounting.org/updates/maintenance-updates-2019/) 4. d [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 5. e [Subparagraph superseded by Maintenance Update No. 2019-01.](https://asc.understandingaccounting.org/updates/maintenance-updates-2019/) 6. f [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 7. g [Subparagraph superseded by Maintenance Update No. 2019-01.](https://asc.understandingaccounting.org/updates/maintenance-updates-2019/) 8. h [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 9. i [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 10. j Consolidation. Source downloaded (UTC): 2026-09-10T02:09:07.063Z to 2026-09-10T02:09:07.063Z Record version: sha256:b73fdc28642a7b34b41da29dbd201c442d76a051098c4c9a6c5f3bc99d97c0a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-10-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/910/10/#10-objectives) SEC content: no ##### [910-10-10-1](https://asc.understandingaccounting.org/asc/910/10/#910-10-10-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:07.063Z to 2026-09-10T02:09:07.063Z Record version: sha256:df9fb39ae74dc0119db440592e1b0916035bc96ee796f6f2391d10481fcf68f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective of this Topic and the related Subtopics is to present incremental accounting principles specifically related to construction contractors. Source downloaded (UTC): 2026-09-10T02:09:10.326Z to 2026-09-10T02:09:10.326Z Record version: sha256:023343b4226dc6a7dbbd76dc4f1588b13fe6b06e5f945de4877a2d62abedf3dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/910/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [910-10-15-1](https://asc.understandingaccounting.org/asc/910/10/#910-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:10.326Z to 2026-09-10T02:09:10.326Z Record version: sha256:1599ff648afef776a766b66885bde744930983cf6a2ce06247569d7de6a4e974 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the Contractors—Construction Topic only provide incremental industry-specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Subtopics. Entities within the scope of this Topic shall also comply with the applicable standards not included in this Topic. #### Entities ##### [910-10-15-2](https://asc.understandingaccounting.org/asc/910/10/#910-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:10.326Z to 2026-09-10T02:09:10.326Z Record version: sha256:139ba4c19a695d217110d5c4e842d318840c7e78684112af517aa8ce9c4bd0bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Contractor Accounting—Construction Contractors Topic provides guidance for entities that perform construction-type contracts. ##### [910-10-15-3](https://asc.understandingaccounting.org/asc/910/10/#910-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:10.326Z to 2026-09-10T02:09:10.326Z Record version: sha256:1d543234b701c91427045020b4c573b4e774ff46a863c99a0dae0ca92d4820bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although the construction industry is difficult to define because of its diversity, certain characteristics are common to entities in the industry. The most basic characteristic is that work is performed under contractual arrangements with customers. A contractor, regardless of the type of construction activity or the type of contractor, typically enters into an agreement with a customer to build or to make improvements on a tangible property to the customer's specification. The contract with the customer specifies the work to be performed, specifies the basis of determining the amount and terms of payment of the contract price, and generally requires total performance before the contractor's obligation is discharged. Unlike the work of many manufacturers, the construction activities of a contractor are usually performed at job sites owned by customers rather than at a central place of business, and each contract usually involves the production of a unique property rather than repetitive production of identical products. ##### [910-10-15-4](https://asc.understandingaccounting.org/asc/910/10/#910-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:10.326Z to 2026-09-10T02:09:10.326Z Record version: sha256:097ff4aaaafe18f278037d4e64b8c161df53679e90d603a9d5b48bfa23d6d145 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other characteristics common to contractors and significant to accountants and users of financial statements include the following: 1. a A contractor normally obtains the contracts that generate revenue or sales by bidding or negotiating for specific projects. 2. b A contractor bids for or negotiates the initial contract price based on an estimate of the cost to complete the project and the desired profit margin, although the initial price may be changed or renegotiated. 3. c A contractor may be exposed to significant risks in the performance of a contract, particularly a fixed-price contract. 4. d Customers (usually referred to as owners) frequently require a contractor to post a performance and a payment bond as protection against the contractor's failure to meet performance and payment requirements. 5. e The costs and revenues of a contractor are typically accumulated and accounted for by individual contracts or contract commitments extending beyond one accounting period, which complicates the management, accounting, and auditing processes. 6. f The nature of a contractor's risk exposure varies with the type of contract. The several types of contracts used in the construction industry are described in paragraphs [605-35-15-2 through 15-5](https://asc.understandingaccounting.org/asc/605/35/#605-35-15-2) . The four basic types of contracts used based on their pricing arrangements are [fixed-price](https://asc.understandingaccounting.org/glossary/f/#fixed-price-contracts "A fixed-price or lump-sum contract is a contract in which the price is not usually subject to adjustment because of costs incurred by the contractor. See also the following common variations of fixed-price contracts: Firm Fixed-Price Contract Fixed-Price Contract with Economic Price Adjustment Fixed-Price Contract Providing for Prospective Periodic Redetermination of Price Fixed-Price Contract Providing for Retroactive Redetermination of Price Fixed-Price Contract Providing for Firm Target Cost Incentives Fixed-Price Contract Providing for Successive Target Cost Incentives Fixed-Price Contract Providing for Performance Incentives Fixed-Price Level-of-Effort Term Contract.") or [lump-sum contracts](https://asc.understandingaccounting.org/glossary/l/#lump-sum-contract "See Fixed-Price Contracts."), [unit-price contracts](https://asc.understandingaccounting.org/glossary/a/#unit-price-contracts "Contracts under which the contractor is paid a specified amount for every unit of work performed. A unit-price contract is essentially a fixed-price contract with the only variable being units of work performed. Variations in unit-price contracts include the same type of variations as fixed-price contracts. A unit-price contract is normally awarded on the basis of a total price that is the sum of the product of the specified units and unit prices. The method of determining total contract price may give rise to unbalanced unit prices because units to be delivered early in the contract may be assigned higher unit prices than those to be delivered as the work under the contract progresses."), [cost-type contracts](https://asc.understandingaccounting.org/glossary/c/#cost-type-contracts "Contracts that provide for reimbursement of allowable or otherwise defined costs incurred plus a fee that represents profit. Cost-type contracts usually only require that the contractor use his best efforts to accomplish the scope of the work within some specified time and some stated dollar limitation. See also the following common variations of cost-plus contracts: Cost-Plus-Award-Fee Contract Cost-Plus-Fixed-Fee Contract Cost-Plus-Incentive-Fee Contract (Incentive Based on Cost) Cost-Plus-Incentive-Fee Contract (Incentive Based on Performance) Cost-Sharing Contract Cost-Without-Fee Contract."), and [time-and-materials contracts](https://asc.understandingaccounting.org/glossary/a/#time-and-material-contracts "Contracts that generally provide for payments to the contractor on the basis of direct labor hours at fixed hourly rates (that cover the cost of direct labor and indirect expenses and profit) and cost of materials or other specified costs. Common variations of time and material contracts areas follows: Time at marked-up rate Time at marked-up rate, material at cost Time and material at marked-up rates Guaranteed maximum cost—labor only or labor and material."). Source downloaded (UTC): 2026-09-10T02:09:17.881Z to 2026-09-10T02:09:17.881Z Record version: sha256:33dd429396dc5e478b4a8eda0409a181c07ca9dfe3898a0b5190f23df7f23fd2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-10-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/910/10/#35-subsequent-measurement) SEC content: no #### Small Tools ##### [910-10-35-1](https://asc.understandingaccounting.org/asc/910/10/#910-10-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:17.881Z to 2026-09-10T02:09:17.881Z Record version: sha256:faf085cfa8e8e4ead80c79521fae12f3e39c85e55108bb36d85fea8f45bdd5b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Depreciation of small tools carried in fixed assets may be charged to overhead or to specific contracts. See paragraph [910-20-25-4](https://asc.understandingaccounting.org/asc/910/20/#910-20-25-4) for recognition guidance on small tools. Source downloaded (UTC): 2026-09-10T02:09:19.887Z to 2026-09-10T02:09:19.887Z Record version: sha256:386e7de4d09d3f3a9fbbafb0cadac39f8c62b843a362daff5c3443872b7eb947 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/910/10/#45-other-presentation-matters) SEC content: no #### Receivables ##### [910-10-45-1](https://asc.understandingaccounting.org/asc/910/10/#910-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:19.887Z to 2026-09-10T02:09:19.887Z Record version: sha256:132354d50d0c33f7956378b7e9f707f41151fb3fc05fd92fb88406363440953b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The portion of retainages not collectible within one year, or within the operating cycle if it is longer than one year, shall be classified as noncurrent in a classified balance sheet. ##### [910-10-45-2](https://asc.understandingaccounting.org/asc/910/10/#910-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:19.887Z to 2026-09-10T02:09:19.887Z Record version: sha256:076c576e3981cef313fe0704ba4f7c5331148f363787890a5db598ab46d7fc43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [910-10-45-3](https://asc.understandingaccounting.org/asc/910/10/#910-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:19.887Z to 2026-09-10T02:09:19.887Z Record version: sha256:2f89fa43cab8dc9209766ad234d4fbc6d132d98f67e0c8cdc7f82b2fa708f472 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). #### Consolidation—Investment in an Unincorporated Legal Entity ##### [910-10-45-4](https://asc.understandingaccounting.org/asc/910/10/#910-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:19.887Z to 2026-09-10T02:09:19.887Z Record version: sha256:6edd55af94ec7ea346ceaa062226fd3143ef772ebb34d8a9d837ac7dd4405184 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [810-10-45-14](https://asc.understandingaccounting.org/asc/810/10/#810-10-45-14) explains that a proportionate gross financial statement presentation is not appropriate for an investment in an unincorporated legal entity accounted for by the equity method of accounting unless the investee is in either the construction industry (as discussed in this Topic) or an extractive industry (see paragraphs [930-810-45-1](https://asc.understandingaccounting.org/asc/810/930/#810-930-45-1) and [932-810-45-1](https://asc.understandingaccounting.org/asc/810/932/#810-932-45-1)). Source downloaded (UTC): 2026-09-10T02:09:23.569Z to 2026-09-10T02:09:23.569Z Record version: sha256:9815320b43a474e9b87f5a0df05d90e4e33ed0d8574a858aa0096d9f83ba52f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/910/10/#50-disclosure) SEC content: no ##### [910-10-50-1](https://asc.understandingaccounting.org/asc/910/10/#910-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:23.569Z to 2026-09-10T02:09:23.569Z Record version: sha256:82d704f19b1673a233bcb1536a162ea7db30405c66a5c081b5d19d965d66e0b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on disclosures specific to the construction industry. #### Accounting Policies ##### [910-10-50-2](https://asc.understandingaccounting.org/asc/910/10/#910-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:23.569Z to 2026-09-10T02:09:23.569Z Record version: sha256:f67613eebc2780bc40dd5c9ac1acbed8ab346e71319bb7ee6600636e32807f67 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Construction contractors shall follow the general disclosure requirements of Subtopic 235-10. Significant accounting policy disclosures relating to construction contractors include both of the following: 1. a Information relating to the method of reporting by affiliated entities shall be disclosed. 2. b If the operating cycle exceeds one year, the range of contract durations shall be disclosed. #### Liquidity Characteristics ##### [910-10-50-3](https://asc.understandingaccounting.org/asc/910/10/#910-10-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:23.569Z to 2026-09-10T02:09:23.569Z Record version: sha256:d5b4d29fc5635805756715ca5718bc255d9acc75f9007efd242af90b2d814443 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose liquidity characteristics of specific assets and liabilities if either of the following conditions is met: 1. a The entity's operating cycle exceeds one year. 2. b The entity uses an unclassified balance sheet. #### Receivables ##### [910-10-50-4](https://asc.understandingaccounting.org/asc/910/10/#910-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:23.569Z to 2026-09-10T02:09:23.569Z Record version: sha256:630c64208c738036273596bb21338982bc4f340a0587adeadb8170865fb4b89e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [910-10-50-5](https://asc.understandingaccounting.org/asc/910/10/#910-10-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:23.569Z to 2026-09-10T02:09:23.569Z Record version: sha256:ce764f9b5ef5422f0eeb173ddd4723c102584d38968c736805fde3d11f617cab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [910-10-50-6](https://asc.understandingaccounting.org/asc/910/10/#910-10-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:23.569Z to 2026-09-10T02:09:23.569Z Record version: sha256:7d546d54b8ec40767b2c3244efebbc19a762ecb8c34549d2b1764587de1f716d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Both of the following shall be disclosed for receivable amounts maturing after one year: 1. a The amount maturing after one year and, if practicable, the amounts maturing in each year 2. b Interest rates on major receivable items, or on classes of receivables, maturing after one year or an indication of the average interest rate or the range of rates on all receivables. ##### [910-10-50-7](https://asc.understandingaccounting.org/asc/910/10/#910-10-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:23.569Z to 2026-09-10T02:09:23.569Z Record version: sha256:ea156be99f3013df8f9a79c4d2a0479bc9687462a6a8b0fcb958617ebe2c69db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If receivables include amounts representing balances billed but not paid by customers under contract retainage provisions, a contractor shall disclose, either in the balance sheet or in a note to financial statements, all of the following: 1. a The amounts 2. b The portion, if any, expected to be collected after one year 3. c If practicable, the years in which the amounts are expected to be collected. Source downloaded (UTC): 2026-09-10T02:09:27.021Z to 2026-09-10T02:09:27.021Z Record version: sha256:3628317144893b31f2078e1af304e29c45e86420cc09896be76afcfb1963632a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/910/10/#60-relationships) SEC content: no #### Revenue Recognition ##### [910-10-60-1](https://asc.understandingaccounting.org/asc/910/10/#910-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:27.021Z to 2026-09-10T02:09:27.021Z Record version: sha256:cb7f78b78ab198c0a2a2ced4d3abbe835f1ceb1bc392e20bd8c7e291ae114cc1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on accounting for [revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.") recognition of construction-type [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations."), see Topic 606. Source downloaded (UTC): 2026-09-10T02:09:32.963Z to 2026-09-10T02:09:53.961Z Record version: sha256:8b8c7bdf5df69842d7691f0b69e5766dfac9ad30543042d005ce0ded899b2bd7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-20: Contractors—Construction — Contract Costs ### Machine-generated study aids ```json { "summary": "ASC 910-20 governs how construction contractors account for contract costs, focusing on charging equipment and small tool costs to specific contracts. Equipment cost is allocated to contracts on a reasonable basis (time, hours of use, or mileage) using a \"use rate\" that considers equipment cost less salvage/rental, probable life, average idle time, and operating costs. It also requires disclosure of unapproved change orders and claims included in contract costs and of progress payments netted against contract costs.", "key_points": [ "Operating unit costs for construction equipment may be included in contract cost under the use rate theory (910-20-25-1).", "Equipment cost must be allocated to the particular contract on which it is used on a reasonable basis such as time, hours of use, or mileage (910-20-25-2).", "Idle equipment time (e.g., a winter shutdown) may be considered in indirect cost allocations, and rates geared to cover all costs—approximating market lease rates without the profit element—are appropriate (910-20-25-3).", "Small tools may be accounted for as inventory or fixed assets and are charged to a contract as consumed; operating and maintenance costs of miscellaneous small tools are usually charged to overhead unless they relate to specific contracts, and contract costs must be credited with estimated salvage value of tools remaining at completion (910-20-25-4).", "In applying the use rate theory, consider equipment cost less salvage value or rental if leased, probable life, average idle time, and operating costs such as repairs, storage, insurance, and taxes (910-20-30-1).", "Disclose the aggregate amount in contract costs representing unapproved change orders, claims, or similar uncertain items, with a description of nature, status, and recording basis (cost or realizable value) (910-20-50-1(a)).", "Disclose the amount of progress payments netted against contract costs at the balance sheet date (910-20-50-1(b))." ], "categories": [ "Industry-specific", "Initial measurement", "Disclosure", "Inventory and PP&E" ], "audience_level": "intermediate", "student_note": "Exam questions here usually test whether a given cost is a direct contract cost, overhead, or a use-rate allocation—remember that idle equipment cost is not simply expensed but can be built into the use rate. A common misunderstanding is thinking all small tool costs go directly to contracts; operating and maintenance costs of miscellaneous small tools normally go to overhead, and remaining tools' salvage value must be credited back to contract costs.", "related_topics": [ "910-10", "910-405", "606-10", "340-40", "912-20" ], "key_concepts": [ "contract costs", "use rate theory", "equipment cost allocation", "idle equipment time", "small tools", "unapproved change orders and claims", "progress payments", "construction contractors" ] } ``` Source downloaded (UTC): 2026-09-10T02:09:32.963Z to 2026-09-10T02:09:32.963Z Record version: sha256:c1f4dab67c3e79330e25653d3ae034d36bd6dad24581d88a4962a77993c637ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-20-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/910/20/#00-status) SEC content: no ##### [910-20-00-1](https://asc.understandingaccounting.org/asc/910/20/#910-20-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:32.963Z to 2026-09-10T02:09:32.963Z Record version: sha256:87c68e4dfa5b988c507ca35c1e1726a18be8862312c517ddded9da510a1465e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
910-20-25-4AmendedMaintenance Update 2019-01 (PDF)01/08/2019
910-20-25-5SupersededAccounting Standards Update No. 2014-0905/28/2014
910-20-60-1SupersededMaintenance Update 2019-01 (PDF)01/08/2019
Source downloaded (UTC): 2026-09-10T02:09:35.080Z to 2026-09-10T02:09:35.080Z Record version: sha256:ed9c6cf54a702a94fa620f53af55916d87c4ca54dd2c89c2e77a3b7aac7f383c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/910/20/#05-overview-and-background) SEC content: no ##### [910-20-05-1](https://asc.understandingaccounting.org/asc/910/20/#910-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:35.080Z to 2026-09-10T02:09:35.080Z Record version: sha256:5e06b53aecd3111df41bdd7961fcb8e4cf33bebedb4e646eaff68ca52d98f551 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses accounting for contract costs by construction contractors. Source downloaded (UTC): 2026-09-10T02:09:38.861Z to 2026-09-10T02:09:38.861Z Record version: sha256:41b57c0cd8323da98f2b3e979b27cb252c431d3f22a5b46e81c2a83df23c4a82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/910/20/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [910-20-15-1](https://asc.understandingaccounting.org/asc/910/20/#910-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:38.861Z to 2026-09-10T02:09:38.861Z Record version: sha256:49c03b736c36fcc8c323730205ac1bba0e4ce59e40ce0f572fe3acaeb153bfdc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 910-10-15. Source downloaded (UTC): 2026-09-10T02:09:41.664Z to 2026-09-10T02:09:41.664Z Record version: sha256:e7985b3f025986b2a41cc442b75f36f101c6a5a1f750718b07d26f00a76b91c9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-20-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/910/20/#25-recognition) SEC content: no #### Operating Unit Cost for Construction Equipment ##### [910-20-25-1](https://asc.understandingaccounting.org/asc/910/20/#910-20-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:41.664Z to 2026-09-10T02:09:41.664Z Record version: sha256:bcde9e810e2001092eb11a825392d2986c934a8cedaa2cddec4d9796b5f251c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Operating unit costs for construction equipment may be included in contract cost using the use rate theory. ##### [910-20-25-2](https://asc.understandingaccounting.org/asc/910/20/#910-20-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:41.664Z to 2026-09-10T02:09:41.664Z Record version: sha256:6d5eec731182137673826332dec0ca7a4d56e0a4b9d359b2373f9ce0849babd0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A rate may be arrived at, which, based on the reported use of the equipment, will serve as a basis for charging the contracts on which the equipment is used. The cost of a contractor's equipment shall be allocated to the particular contract on which it is used on a reasonable basis, such as time, hours of use, or mileage. ##### [910-20-25-3](https://asc.understandingaccounting.org/asc/910/20/#910-20-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:41.664Z to 2026-09-10T02:09:41.664Z Record version: sha256:7fbc366a90a5fb618f78f0b4b4841df64aeb738444c841f4b4ca6871ba4e9353 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Idle equipment time, for example if a contractor's equipment is idle during a winter season, may be considered in determining indirect cost allocations. Allocation of idle equipment costs to contracts by use of rates geared to cover all costs is appropriate. That procedure results in rates that lessors of the same type of equipment charge users in the same location, except for the profit element. #### Small Tools ##### [910-20-25-4](https://asc.understandingaccounting.org/asc/910/20/#910-20-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:41.664Z to 2026-09-10T02:09:41.664Z Record version: sha256:7c0272392f3f5f82b7b40f5e574309dd7db3c15fc80da57aec192fdd23d60a49 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Small tools may be accounted for as inventory or fixed assets. Small tools shall be charged to a contract as they are consumed in performance of the contract. Operating and maintenance costs of miscellaneous small tools and equipment are usually charged to overhead accounts rather than specific contracts. However, a contractor may charge the costs directly to specific contracts if they relate to specific contracts. Small tools can frequently be charged to contracts if purchased for the contracts or if issued from a central pool. Contract costs shall be credited with estimated salvage value of small tools remaining at completion of the contracts. ##### [910-20-25-5](https://asc.understandingaccounting.org/asc/910/20/#910-20-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:41.664Z to 2026-09-10T02:09:41.664Z Record version: sha256:1789f8919d18b9cc1626995fac45aaa22b695eb1df28b9ba00fb9d9b77add45d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-10T02:09:44.538Z to 2026-09-10T02:09:44.538Z Record version: sha256:cfcf6ac6980708521099346b337a95fdc82f8d5d2a688eedcdd532871688190e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-20-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/910/20/#30-initial-measurement) SEC content: no #### Operating Unit Cost for Construction Equipment ##### [910-20-30-1](https://asc.understandingaccounting.org/asc/910/20/#910-20-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:44.538Z to 2026-09-10T02:09:44.538Z Record version: sha256:b41d1b97cfa2f08e1e610aa2ce9dd5f214fcf2417e8fac724f576658c3f3c5d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In applying the use rate theory (see paragraph [910-20-25-1](https://asc.understandingaccounting.org/asc/910/20/#910-20-25-1)), all of the following factors shall be considered: 1. a The cost of the equipment, less estimates of its salvage value or rental if it is leased 2. b The probable life of the equipment 3. c The average idle time during the life or period of hire of the equipment 4. d The costs of operating the equipment, such as repairs, storage, insurance, and taxes. Source downloaded (UTC): 2026-09-10T02:09:46.305Z to 2026-09-10T02:09:46.305Z Record version: sha256:7a26a8f73a71f85f33dab4356fd2ec433763d3ac6fb3d35f85612ec8c12dd808 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/910/20/#50-disclosure) SEC content: no ##### [910-20-50-1](https://asc.understandingaccounting.org/asc/910/20/#910-20-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:46.305Z to 2026-09-10T02:09:46.305Z Record version: sha256:2730f1cb759d6bfc2bb2a67ebbb8d7b159212a2f04ff4870cb8b9116f199bf8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Both of the following amounts included in contract costs shall be disclosed: 1. a The aggregate amount included in contract costs representing unapproved change orders, claims, or similar items subject to uncertainty concerning their determination or ultimate realization, plus a description of the nature and status of the principal items comprising such aggregate amounts and the basis on which such items are recorded (for example, cost or realizable value) 2. b The amount of progress payments netted against contract costs at the date of the balance sheet. Source downloaded (UTC): 2026-09-10T02:09:50.385Z to 2026-09-10T02:09:50.385Z Record version: sha256:9d0b0b2e08627687674adf1e63864642808b988e9df7c074ae493a1bc80571c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 910-20-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/910/20/#60-relationships) SEC content: no ##### [910-20-60-1](https://asc.understandingaccounting.org/asc/910/20/#910-20-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:50.385Z to 2026-09-10T02:09:50.385Z Record version: sha256:5b7ac2c8a9dcb1f2f9d56c8fa2a795ad2fd7e06166c9b92d98bba5beab9826aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).