Project Accounting

Accounting for significant projects involves navigating through numerous challenging accounting issues. The Project Accounting course offers insights into addressing these challenges by outlining an optimal cost collection system and detailing the recording of expenses and revenues within it. The course delves into the management of change orders, allowances, and contingencies, considering the impact of GAAP requirements on specific project issues such as interest capitalization and the treatment of research and development costs.

Additionally, the course explores the controls and measurements applied to projects. Its comprehensive coverage makes it an indispensable resource for project accountants, facilitating the seamless tracking of project status and profitability through labor, equipment, materials, and employee inputs. The course ensures precision in accounting and billing processes throughout the project life cycle and streamlines time and expense management.

Objective

• Identify the key characteristics of a project
• Explain pricing calculation methods for project contracts and the issues associated with different profit recognition approaches
• Identify various types of direct project costs, including costs incurred to obtain a contract
• Determine when allowances should be included in a project budget
• Understand the circumstances under which interest costs are capitalized
• Identify when costs related to internal-use software should be capitalized or expensed