Analyzing Contractor Financial Statements
Part 1
4.72
502 Reviews
In this 1st course of the Analysis of Contractors Skill Series, participants will explore cost and profits in excess of billings, the role of contract status reports, and calculations for earned revenue, actual costs, anticipated costs, over/underbillings, percent complete, and gross profit.
Certificate
1 credit or $295
Cost
1.5 - 2 Hrs.
Duration
1 hr.
Prep Time
1
Quiz
Overview
Participants examine the events that generate balances in two special accounts - cost and profits in excess of billings and billings in excess of cost and profits. In addition, Participants explore the role of the contract status report and the manner in which the report supports and ties back to the accrual financial statements. Further, they review the computation of numerous critical amounts recorded on the contract status report for both complete and incomplete contracts, such as a) earned revenue, b) actual cost-to-date, c) total cost anticipated, d) over / underbillings, e) percent complete, f) gross profit percent, and g) gross profit amount.
Who Should Attend
This Course is ideal for participants currently in or aspiring to enter the following job functions:
- Credit Management
- Commercial Credit Administration
- Commercial Real Estate Administration
- Commercial Loan Administration
- C & I Lending
- CRE Lending
- Corporate Lending
- Loan Review
- Special Assets
- Internal Audit
- Construction Lending
- Credit Analysis
- Loan Support
Prerequisites
General familiarity with accrual financial statements and accounting terms and concepts
Objectives
By the end of the webinar, participants will be able to:
- Identify the fundamental difference, and resulting impact on financial statement presentation, between the percentage of completion method of accounting and standard accrual accounting.
- Identify the events that lead to balances in the Cost and Profits in Excess of Billings account on the asset side of the balance sheet.
- Identify the events that lead to balances in the Billings in Excess of Cost and Profits account on the liabilities side of the balance sheet.
- Understand the information content of a contract status report, or work in progress report, and trace how it ties back to the accrual income statement and balance sheet.
- Understand and perform the computations for all values reported on the contract status report, which, in turn, support and verify specific values reported on the accrual income statement and balance sheet.
- Understand the critical role estimates play in the preparation and presentation of contractor financial statements, supplementary schedules, and the underlying contract status report.
Materials(access provided with registration)
- Credit Refresher on Percentage of Completion Method
- Financial Statements for Southwest Contractors, Inc., including the Contract Status / Work in Progress Reports
- Exercise for the Webinar
- Webinar Presentation Slides
- Webinar Poll Questions
- Webinar Poll Solutions
- Exercise Solutions
This is Course 1 of 2 in the Analysis of Contractors Skill Series
Analyzing Contractor Financial Statements Part 1
Analyzing Contractor Financial Statements Part 2
