Financial Statement Presentation
Balance Sheet:
- Accounts Receivable
- Construction in Progress (CIP) less Billings:
- If a debit (dr) balance it is an asset .
- If a credit (cr) it is a liability.
- Present separately contracts where CIP > Billings from those where CIP < Billings.
Income Statement:
- Profit recognized is calculated from the formulas (offset construction revenue and expense.)