November 12, 2003 U.S. Senate Committee on Banking, Housing and Urban Affairs Subcommittee on Securities and Investment
I am Richard Forrestel, Jr., a CPA and Treasurer of Cold Spring Construction Company, based in
Akron, NY. I am testifying on behalf of the Associated General Contractors of America (AGC),
a national trade association representing more than 33,000 firms, including 7,200 of America's
leading general contractors, and 12,000 specialty-contracting firms. AGC is the voice of the
While AGC’s membership is diverse, the majority of AGC firms are closely-held businesses like
ours. AGC member firms are 94% closely held, 81% are owned by fewer than four people.
I serve as the Chair of AGC’s Tax and Fiscal Affairs Committee. It is this subgroup of small
business CFOs and construction accounting professionals who have spent the last few months
trying to understand why the Financial Accounting Standards Board (FASB) would inflict
Financial Accounting Standard 150 (FAS 150) on the industry. This FASB standard has hit our
industry and my committee like an earthquake. Its has the potential to undermine the fiscal
stature of tens of thousands of construction companies, like mine.
I would like to thank Chairman Enzi and the other members of this distinguished committee for
the opportunity to discuss both the potentially devastating impact of FAS 150 on family-owned
businesses as well as the general process of communication between American small businesses