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

Issue

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.

Published on April 25, 2019