completed contract method |
|
Definition
Revenue recognition method for a contract that is completed over more than one accounting period. It is employed specially where the total cost of performing the contract, and the amount of profit to be realized, are largely uncertain. In this method (as opposed to the percentage of completion method), the total contract revenue and the corresponding cost of performing the contract are recognized only in the accounting period in which the contract is completed.
email to a friend
print this definition
cite this definition
link to this page
completed contract method is in the Accounting & Auditing, Agreements & Contracts and Purchasing & Procurement subjects.
This content can be found on the following page:
http://www.businessdictionary.com/definition/completed-contract-method.html