It’s already making an impact.
The new revenue standard is impacting some prominent, publicly traded A/E/C firms. But how will the new standard impact your business? In this episode of “Unique Perspectives – The DGC Podcast,” our guest is Jon Butler, a Partner at DGC. He examined the annual reports of two well-known A/E/C firms to find out how companies are applying the new standard, and what this could mean for other firms going forward.
Here is a partial transcript of Jon’s interview with host Tom Annino:
Tom Annino: The new revenue standard will impact all of the largest A/E/C firms in the world. I would imagine it’s impacting some DGC clients as well.
Jon Butler: It is. It will impact any DGC client that has external financial statements, whether it be an audit, review, compilation, or anything that needs to be prepared in accordance with US GAAP. For publicly traded companies, it’s applicable for some now and the remainder later this year. It depends on their year-end.
TA: So you decided to take a look at a couple of companies to try and get a clearer picture of how the new revenue standard is impacting them and will impact them.
JB: That’s correct, Tom. Anyone who has looked at the new standard, it’s very dense. There are hundreds and hundreds of pages. All of the national firms have written books on the new standard and how to apply it. One way to look at it and understand how it may impact your business is to analyze public companies through reviews of their respective annual or quarterly public filings. So I looked at the public filings of two respected A/E/C firms. One that is very large, Jacobs Engineering Group. They have $10 billion in annual revenue. The other is a middle-market A/E/C firm, NV5. They have $333 million in revenue as of their last 10-K in 2017.
***Please note: Jacobs Engineering Group and NV5 are not DGC clients.***
So how much has the new standard impacted these two companies? Could these findings be an indication of how the new standard could affect your firm? Click here to listen to the podcast or click on the Soundcloud player above.
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