Construction & Related Services

March 2017 Construction News Brief

Construction News Brief March 2017

Captive Insurance Three Recent Developments to Watch In recent years, captive insurance companies have been attracting more and more attention in the construction industry. A number of companies have expressed interest in both the risk management advantages and potential tax benefits of forming a captive. If you are considering forming...

New OSHA Electronic Reporting Requirement

A sign with a safety reminder

A new workplace injury reporting rule from the Occupational Safety and Health Administration (OSHA) will directly affect a number of contractors. The new rule requires many employers to electronically submit information about workplace injuries and illnesses to an OSHA-operated website — and the deadline for the first submission is only...

Captive Insurance – Three Recent Developments to Watch

Injury report form with a yellow hard hat and ear muffs on top of a yellow high visibility vest.

In recent years, captive insurance companies have been attracting more and more attention in the construction industry. A number of companies have expressed interest in both the risk management advantages and potential tax benefits of forming a captive. If you are considering forming a captive insurance company, or if your...

Five Key Performance Indicators That Sureties Watch

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When surety underwriters review your financial statements, they are looking for evidence of sound financial condition. Every underwriter has its own standards and expectations, but here are five key performance indicators (KPIs) many bonding companies look at closely: 1. Working Capital: Sureties typically adjust the textbook definition of...

How New Lease Accounting Rules May Affect Contractors

Vehicle fleet with construction machinery of building or mining company

Earlier this year the Financial Accounting Standards Board (FASB) issued its long-awaited revised lease accounting standard. The new standard – Accounting Standards Update (ASU) No. 2016-02, “Leases (Topic 842)” – could have a significant impact on many contractors that lease vehicles, equipment or buildings. FASB standards apply to all contractors...

FASB Proposes to Simplify the Classification of Debt

long-term goal

by Linda Marie Pearson, CPA, CFE On January 10, 2017, FASB issued an exposure draft to simplify the classification of debt in a classified balance sheet (current versus noncurrent). The amendments in this proposed Update will replace the current, fact-specific guidance with “an overarching, cohesive principle” – the...

FASB Focuses on Inventory Disclosures

Businessman working on logistic inside stock room with touchscreen tablet.

-by Linda Marie Pearson, CPA, CFE, Principal On January 10, 2017, FASB issued an exposure draft to change the disclosure requirements of inventory. The proposed main provisions include required disclosures for: Disaggregating inventory by component (for example, raw materials, work-in-process, finished goods, and supplies). Note: While many companies...