To Obtain Bonding, You Need to Go Back to Basics
The operating results and cash flows of many construction contractors have been negatively impacted by the recent declines in the U.S. economy and the related decrease in demand for construction contractor products and services. In many instances, unfavorable operating results have diminished contractor bonding capacity and sometimes left contractors unable to obtain sufficient bonding for available work. In this environment, it’s more important than ever for management to refocus on the basics. A surety’s evaluation of a construction contractor involves a number of factors, such as financial performance, contractor character, a successful track record, a quality management team, a succession. Read More.
Manufacturing Deduction Offers Significant Benefits to Construction Contractors
The deduction for income attributable to domestic production activities, often referred to as the “manufacturing deduction,” originally enacted as part of the American Jobs Creation Act of 2004 is now old news. What you may not be aware of is that, beginning in 2010 tax years, the deduction is now equal to nine percent of a taxpayer’s “qualified production activities income” (or “QPAI”). While coverage of the law has focused only on its application to manufacturers, the law actually refers to “producers” not “manufacturers.” In fact, construction contractors actually qualify as “producers” under the law, which can mean significant tax. Read More.
Lease Accounting Update
On July 21, 2011, the Financial Accounting Standards Board and the International Accounting Standards Board (the Boards) unanimously agreed to re-expose their proposals for a new lease accounting standard. The re-exposed document will reflect the Boards’ consideration of public comment that has been received on the proposal since its original publication in August 2010. The re-exposed document is expected to be issued shortly after the conclusion of the Boards’ deliberations during the third quarter of 2011. Although the re-exposed document will reflect the Boards’ consideration of the many comments received since the August 2010 issuance of the exposure draft, the. Read More.