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108R-19: Accounting Considerations in Cost Control [April 9, 2022]

108R-19: Accounting Considerations in Cost Control
AACE International, April 9, 2022

Price: $0 (Member) / $100 (Non-Member)

The intent of this recommended practice (RP) is to document and provide reliable guidelines that practitioners can recommend or consider for use when planning budgets and using resources. Such guidelines and practices should work in concert with generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS). Accounting methods, rules, and standards are specific to the project, company, and location. However, when possible, the standards for project reporting should be the benchmark for certifying, either officially or unofficially, to allow for repeatable processes and results. Every organization or project should define and document the accounting approach or methodology for allocating its actual costs in relation to direct, indirect, overhead, and other direct costs. These approaches should also be discussed in other documents such as financial disclosure statements and an earned value management system description. The intended audience is program and project managers, cost engineering professionals, project controls professionals, and earned value practitioners who develop or assess performance measurement baselines (PMB).

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