operating cycle exceeding one year

Industry2

1. 910-10Overall910 Contractors—Construction

   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 Most of its former revenue guidance was superseded by ASU 2014-09, so revenue recognition now follows Topic 606; what remains addresses small-tool depreciation, classification of retainages, proportionate gross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).

2. 910-20Contract Costs910 Contractors—Construction

   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.