Masonry Magazine August 1984 Page. 20
Accurate recording of financial data is the key
to reliable tax reporting, says the author. But there
are substantial differences between financial
statements issued by construction contractors and those
issued by other types of firms...
FINANCIAL STATEMENTS FOR
CONTRACTORS
By WILLIAM J. HOLTZ, CPA
Financial Statements: The Accountant's Role
Generally, your accounting firm is involved in producing annual and interim financial statements that you distribute outside of your company. Depending upon the extent of their involvement, they attach their report indicating they have audited, reviewed, or compiled the statements. An audit involves the most detailed procedures and allows the accountant to accept the highest degree of responsibility. Most bonding companies, underwriters and banks require audited financial statements if their exposure levels are above certain amounts.
The accounting profession has established procedures known as Generally Accepted Auditing Standards (GAAS) that an accounting firm must follow in order to say they have examined (audited) the financial statements and given their opinion thereon. If the financial statements have been audited or reviewed, they must contain disclosures in addition to the basic financial statement such as the account-
EXAMPLE V
ESTIMATED
SAMPLE CONSTRUCTION
Year Ende
Costs and
Estimated
Gross
Profit
Earnings in
Job
Contract
Total
Gross
Cost to
ast of
Billings
Excess of
Price
Cost
Profit
Complete
Cost Complete
to Date
Billings
Garden Apartments 100 $ 520,914 $ 467,859 5
53,055 5
11.34 100.01
$515,000 $ 5,914
Oramor Savings
101 1,255,771 1.152.612
103,159
86.902 9.0
92.3
1,156,825
Marton Towers
102 10.441.592 8.696,427 1,743,165 3,262,786 20.0
62.3 6,400,000 100.935
Toron Building
103 1,833,692 1,584,320 249,372
960,732
15.7
39.4
800,000
Upstate Hospital
104
784,769
765,255
19,514
155,041
2.6
79.7
675.000
County Pover and
Light
105
250,000
289,508 (39,508)
20,000 (13.6)
93.1
230,000
$15.086,736 $12.957.981 52.126,757 54,507,541 16.4
65.2 59,778,825 5106,849
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2
3
4
5
6
7
8
20 MASONRY-JULY/AUGUST, 1984