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(1) DICKERSON FLORIDA, INC. (A Wholly-owned Subsidiary of The -Dickerson Group, Inc.) NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 and 2018 Summary of Significant Accounting policies (c) Revenue'Recognition (continued) The Company has no projects where it is in the process of negotiating, or awaiting final approval of, unapproved change orders and claims with its customers. The Company is proceeding with its contractual rights to recoup additional costs incurred from its customers based on completing work associated with change orders, including change orders with pending change order pricing, or claims related to significant changes in scope which resulted in substantial delays and additional costs in completing the work. Unapproved change. order and claim information has been provided to its customers and negotiations with the customers are ongoing. if additional progress with an acceptable resolution is not reached, legal action will be taken. Contract Estimates The asset, "Costs and estimated earnings in excess of .billings on uncompleted contracts" represents revenues recognized in excess of amounts billed on these contracts and will be billed at a later date, usually due to contract terms. in addition, revenue associated with unapproved change orders and claims is also included when realization is probable and amounts can be reliably determined. The liability, "Billings in excess of costs and estimated earnings on uncompleted contracts" 'represents billings in excess of revenues recognized on these contracts. Refer to Note 3 for further information regarding contract billing status. (d) Fair Value of Financial Assets and Liabilities The .fair value of financial instruments is the amount at which the instrument could be exchanged in a current transaction between willing parties.. The Company's financial instruments are cash and cash equivalents, account contracts receivable, accounts payable, notes payable, and {11) ( continued)