In the % of completion method What happens to costs?
Contract costs for the period are expensed against the revenue.
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3.2.1. Long-Term Contracts ts.
Under the percentage-of-completion method, in each accounting period, the company estimates what percentage of the contract is complete and then reports that percentage of the total contract revenue in its income statement. <span>Contract costs for the period are expensed against the revenue. Therefore, net income or profit is reported each year as work is performed.
Under IFRS, if the outcome of the contract cannot be measured reliably, then revenue may be reco
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