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(1) <br />DICKERSON FLORIDA, INC. <br />(A Wholly-owned Subsidiary of The Dickerson Group, Inc.) <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31,. 2019 and 2018 <br />Summary of S 2nificant Accounting Policies <br />(c) Revenue Recognition (continued) <br />repairs and, depreciation, insurance and payroll taxes. <br />Administrative and general expenses are charged to expense <br />as incurred. Provisions for estimated losses on <br />uncompleted contracts are made in the period in which such <br />losses are determined. Changes in job performance, job <br />conditions, estimated profitability and associated change <br />orders and claims, including those changes arising from <br />contract penalty provisions and final contract settlements, <br />may result in revisions to costs and income, and are <br />recognized in the period in which the revisions are <br />determined. <br />The contracts generally take three months to three years to <br />complete. The Company generally provides a one-year <br />warranty for workmanship under its contracts when <br />completed. Warranty claims historically have been <br />insignificant. <br />Variable Consideration <br />Change orders are modifications of an original contract <br />that effectively change the existing provisions of the <br />contract without adding new provisions or terms. Change <br />orders may include changes in specifications or designs, <br />manner of performance, facilities, equipment, materials, <br />sites and period of completion of the work. Either the <br />Company or the customers may initiate change orders. <br />The Company considers unapproved change orders to be <br />contract variationsfor which it has customer approval for <br />a change of scope but a price change .associated with the <br />scope change has not yet been agreed upon. <br />Costs associated. with unapproved change orders are included <br />in the .estimated costs to complete the contracts and are <br />treated as project costs as incurred. The Company <br />recognizes revenue equal to costs incurred on unapproved <br />change orders when management determines approval to be <br />probable. Unapproved change orders involve: the use of <br />estimates, and it is reasonably possible that revisions to <br />the estimated <br />(g) (continued) <br />