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Note 2: Contracts Receivable
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2018 2017
Completed Contracts $ 1,224,000 $ 123,334
Contracts in Progress 59,330,459 56,300,186
Other receivables - point in time sales 2,100,000 1,098,000
Retainage 28,492,329 30,169,790
91,146,788 87,691,310
Less: Allowance for Doubtful Accounts 100,000 100,000
$ 91,046,788 $ 87,591,310
Practical Application Note: Current GAAP guidance for long-term contracts, ASC 310-10-45-2, requires
disclosure of the diff erent classes of receivables by either separately presenting them on the face of
the fi nancial statement or in the footnotes. This requires at a minimum, that receivables from contracts
with customers (completed and in-progress) be shown as one amount and retentions shown as a
separate amount. However, it is easy to make the argument that receivables from completed contracts
are a diff erent "class" of receivable from in-progress receivables and therefore each of them should be
presented.
Practical Application Note: Note that the disclosure example below is not required if the detail
information is on the face of the statement of fi nancial condition and comparative statements are
presented.
Practical Application Note: ASC 606-10-50-10 requires disclosures related to signifi cant changes in
the contract asset and liability balances. Keep in mind that there is only one contract asset for any given
contract. That will be the underbilling or overbilling. This section of the standard only applies to the under/
overbilling. Accounts receivable, payable, capitalized costs, etc. are contract "balances" but not the
contract "asset" or "liability".
