Intangible assets with finite lives are recorded at cost and are primarily amortized on a straight-line basis over the esti-
mated period of economic benefit. The Corporation reviews intangible assets with finite lives for impairment whenever
events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Recoverability
of these intangible assets is assessed based on the undiscounted future cash flows expected to result from the use of
the asset. If the undiscounted future cash flows are less than the carrying value, the purchased intangible assets are
considered to be impaired. The amounts of the impairment loss, if any, is measured as the difference between the
carrying amount of these assets and the fair value based on a discounted cash flow approach, or when available and
appropriate, to comparable market values. The Corporation has not acquired intangible assets with indefinite lives.
(K) IMPAIRMENT OF LONG-LIVED ASSETS
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison
of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the asset.
If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which
the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the
lower of the carrying amount or fair value less the cost to sell.
(L) NATURAL RESOURCE REVENUES
Natural resource revenues are derived from sand and gravel quarry operations, and natural resource revenues dis-
tributable to the Corporation from other Alaska Native Regional Corporations, under Section 7(i) of the Alaska Native
Claims Settlement Act. Revenues distributable under Section 7(i) are recorded when received or when the amount is
determined and receipt is assured. Natural resource revenues are recorded net of amounts distributable under Section
7(j) of the Alaska Native Claims Settlement Act.
(M) REVENUE AND COST RECOGNITION
In general, the Corporation recognizes revenue when the following criteria are met: services have been performed,
or delivery has occurred, collection of the receivable is probable, persuasive evidence of an arrangement exists, and
the sales price is fixed and determinable.
The revenues from the Corporation’s industrial services, government services, and construction business lines are
derived from fixed price, time and material, and cost plus contracts to provide services under various federal, state, and
commercial contracts. Revenue on fixed price contracts is recognized by the percentage of completion method based
on the proportion of costs incurred to date to management’s best estimate of total contract costs. Revenues from time
and material contracts and cost plus contracts are recognized currently as the work is performed. Change orders are
not included in contract revenue until agreed upon and approved by the customer and Corporation regarding both
scope and price. Claims are not included in contract revenue until it is probable that the claim will result in additional
contract revenue and the amount can be reliably estimated or when amounts have been received. Contract costs
include all direct costs and any indirect, or overhead, costs allocable to contracts. Included in indirect or overhead are
allocable general and administrative expenses to the extent such costs are allowable under government procurement
regulations and recoverable under the contract. Revisions in cost and profit estimates are made during the course of
work and are reflected when facts that require revision become known. Provision for losses on uncompleted contracts
is made in the period in which such losses are identified.
50
BBNC FY2019 ANNUAL REPORT