June 16, 2008

Canadian Construction Association

CCA approves construction accounting guide for smaller firms

TORONTO

The Canadian Construction Association (CCA) approved a best practices guide for construction accounting at its recent board of directors meeting.

The CCA guide called Construction Accounting Nest Practices: Guide on Revenue Recognition was endorsed at the board’s June meeting.

The purpose of the guide is to identify and promote a better understanding of accounting principles relevant to construction in the areas of revenue recognition, debt financing and future income taxes.

The guide is targeted to small and medium sized contractors who may not have the resources to employ in-house accounting expertise. The CCA also states the guide could be a useful training tool for new staff in accounting departments of larger contractors.

“The CCA believes that adopting sound accounting principles will increase a contractor’s ability to receive bonding capacity through their surety company and improve their success in securing lines of credit and equipment loans,” states the CCA in the guide.

— DCN Staff

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