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April 24, 2019

Engineering Firm Accelerates Adoption Time for Revenue Recognition Standard

Client Profile

Industry: Environmental Engineering & Consulting
Annual Revenue: ~$45 million
Geographic Footprint: National
Ownership Structure: Private Equity Owned

Windmills in the distanceIssue

An environmental engineering and consulting firm had several different revenue streams
and faced a complex adoption of the new revenue recognition standard. The CFO and the
company’s lenders wanted a better understanding of the impact of the new accounting
standard before the adoption date, but the engineering company needed additional
resources to complete this analysis.

Solution

The engineering company outsourced its revenue recognition adoption to our team. We
took a deep dive into the business, including its contracts, the different types of projects
it performs, and its current revenue recognition patterns to analyze the effect of the new
accounting standard. Our team obtained access to the company’s networks and systems, ran
the necessary data through our proprietary model, and performed an assessment on how
revenue recognition for the different revenue streams and project types would change under
ASC Topic 606.

Outcome

For each revenue stream, the company received a fully implemented revenue recognition
model, disclosure support, and work products to provide to its financial statement auditors.
Several contracts and performance obligations required significant judgments and
assumptions, and the experience our team had with the new standard helped us reach
supportable conclusions.

2019 Business Tax Planning Supplement


Copyright © 2019, CBIZ, Inc. All rights reserved. Contents of this publication may not be reproduced without the express written consent of CBIZ. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

CBIZ MHM is the brand name for CBIZ MHM, LLC, a national professional services company providing tax, financial advisory and consulting services to individuals, tax-exempt organizations and a wide range of publicly-traded and privately-held companies. CBIZ MHM, LLC is a fully owned subsidiary of CBIZ, Inc. (NYSE: CBZ).

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