Company: JBI
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001839839-25-000032
Chunk: 16

Company: Janus International Group, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 16
---
 recognized over time as the customer simultaneously receives and consumes the benefits provided by the Company. For revenue recognized over time, the Company utilizes the cost-to-cost input method as the most accurate measure of when goods and services are transferred to the customer. Under this method, the Company estimates the costs to complete individual contracts and recognizes revenue proportionately to the total contract price deemed complete, based on the relationship of costs incurred to date to total anticipated costs.

We identified the evaluation of certain service revenues recognized over time using cost-to-cost percentage of completion as a critical audit matter. Specifically, subjective auditor judgment was required to assess management’s percentage of completion assumptions, which are based on the determination of the status of uncompleted projects and rely on the expertise, experience, and judgment of project management. Changes in the percentage of completion assumptions could have an impact on recognized service revenues.

52

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s revenue recognition process, including controls related to the development of the percentage of completion assumption for uncompleted contracts. We selected a sample of uncompleted contracts and, for each sampled contract, assessed the percentage of completion assumption used to recognize revenue by:

•reading the underlying contract to obtain an understanding of the contractual requirements

•interviewing and reviewing questionnaires prepared by project management personnel of the Company, and inspecting related documentation, to gain an understanding of project status and factors that should be considered within the percentage of completion assumption 

•comparing the percentage of completion assumption for the contract to the Company’s project status assessment.

We have served as the Company’s auditor since 2024.

/s/ KPMG LLP

Atlanta, Georgia

February 26, 2025

53

Report of Independent Registered Public Accounting Firm

Shareholders and Board of Directors

Janus International Group, Inc.

Temple, Georgia

Opinion on the Consolidated Financial Statements

We have audited, before the effects of the adjustments to retrospectively apply the change in accounting due to the adoption of Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), as described in Notes 2 and 18, the accompanying consolidated balance sheet of Janus International Group, Inc. (the “Company”) as of December 30, 2023, and the related consolidated statements of operations and comprehensive income, changes in stockholders’ equity,