Page 123 - Annual Report 2016 - Cover & Divider Pages.indd

fuliy realized.
contracts

consolidated balance sheet.

See Independent Accountant's Review Report.
NOTE 2 - NOTES RECEIVABLE - STOCKHOLDERS

Net billings in excess of costs and estimated earnings
NOTE 3 - COSTS AND BILLINGS ON UNCOMPLETED CONTRACTS

FGM ARCHITECTS INC.
Included in the accompanying balance sheet under the following captions:
2016
Net billings in excess of costs and estimated earnings on uncompleted
Billings in excess of costs and estimated earnings on uncompleted contracts
Costs and estimated earnings in excess of billings on uncompfeted contracts
58,093,158
Less: Billings to date 58,924/704
Estimated earnings 1/717,391
Costs incurred on uncompleted contracts $ 56,375,767
on uncompleted contracts $( 831,546)
NOTES TO THE FINANCIAL STATEMENTS
$
$
Costs and billings on uncompleted contracts consist of the following as of September 30:
A
_L
_$L
2016
2015
738,096
47,896,779
1,606,335
49,503,114
50,477,642
831,546)
1/569/642}
974,528)
NOTE 1 - DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concluded)
30, 2016 and 2015. Amortization expense was $60/000 for the years ended September 30, 2016 and 2015.
$
_L
_AL
on these notes was approximately $55 and $52 for the years ended September 30, 2016 and 2015, respectively.
2015
1,386,451
974/528)
2,360,979)
is amortized over the lease term as a charge against depreciation. The difference between rent expense recorded and the
number of months of the [ease term. The build-out allowance is recorded as part of leasehold improvements and the incentive
Income Taxes. The Company reports income to the Internal Revenue Service on a cash basis/ as permitted under IRS regulations.
GAAP-based financial statement carrying values of assets and liabilities and their respective cash method tax bases, in addition/
Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the
The Company maintains notes receivable to various stockholders. Such notes are collateralized by the shares of Company stock
owned, bear interest at the applicable federal rate (0.64% as of September 30, 2016), and are due on demand, interest earned
future rent increases/ periods of rent abatement and buEld-out aliowances. In accordance with generally accepted accounting
amount paid is credited or charged to "Deferred Rent/" which is reflected as a separate line item in the accompanying
Deferred Rent. The Company entered into various operating iease agreements for office space, which contain provisions for
and liabilities assumed in a business combination. Effective January 1, 2013, the Company elected to amortizegoodwili over an
principles, the Company records monthly rent expense equal to the total payments due over the lease term, divided by the
the amount of any future tax benefits is reduced by a valuation allowance to the extent such benefits are not expected to be
performs an impairment test for goodwill at the entity level. There were no impairment changes for the years ended September
Goodwill. Goodwill represents the consideration transferred in excess of fair values assigned to the underlying assets acquired
Page?
estimated useful life of five years, which Is an alternative method allowed under GAAP. Upon a triggering event/the Company