Long-term Construction Accounting
- Characteristics of methods: Characteristics of contract, uncertainty, tax planning, help determine which method to follow.
- Percentage-of-Completion:
- This is the preferred method and should be used unless clearly inappropriate (high degree of uncertainty surrounding).
- Better adheres to matching.
- You must be able to estimate costs and revenues.
- You can have problems with cost loading (early or late) or input/output inefficiencies.