Percentage Of Completion Method

Filed Under »
Dictionary Says

Definition of 'Percentage Of Completion Method'

An accounting method in which the revenues and expenses of long-term contracts are recognized yearly as a percentage of the work completed during that year. This is the opposite of the completed contract method, which allows taxpayers to defer the reporting of any income and expenses until a long-term project is completed. The percentage of completion method of accounting is commonly used in construction projects.
Investopedia Says

Investopedia explains 'Percentage Of Completion Method'

The percentage of completion method of accounting requires the reporting of revenues and expenses on a yearly basis, as determined by the percentage of the contract that has been fulfilled. The current income and expenses are compared with the total estimated costs to determine the tax liability for the year. For example, a project that is 30% complete in year one and 45% complete in year two would only have the incremental 15% of revenue recognized in the second year.
Search results for

'Percentage Of Completion Method'

  • CFA Level 1 Study Guide - Financial Statements - Revenue ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/revenue-recognition-accounting-entries.asp
    ... Statement; 6.20 Cash Flow Statement Basics; 6.21 Cash Flow Computations - Indirect
    Method; 6.22 Cash Flow Computations - Direct Method; ...

  • CFA Level 1 Study Guide - Financial Statements - Revenue ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/revenue-recognition-methods.asp
    ... Statement; 6.20 Cash Flow Statement Basics; 6.21 Cash Flow Computations - Indirect
    Method; 6.22 Cash Flow Computations - Direct Method; ...

  • CFA Level 1 Study Guide - Financial Statements - Revenue ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/revenue-recognition-cash-flows-ratios.asp
    ... Statement; 6.20 Cash Flow Statement Basics; 6.21 Cash Flow Computations - Indirect
    Method; 6.22 Cash Flow Computations - Direct Method; ...

  • Creative Accounting: When It's Too Good To Be True

    http://www.investopedia.com/articles/trading/10/creative-accounting-too-good.asp
    ... Percentage-of-Completion Contracts Contracts may be accounted for either by using
    the percentage-of-completion or the completed-contract method. ...

  • CFA Level 1 Study Guide - Financial Statements - Income Statement ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/income-statement-non-recurring.asp
    ... Statement; 6.20 Cash Flow Statement Basics; 6.21 Cash Flow Computations - Indirect
    Method; 6.22 Cash Flow Computations - Direct Method; ...

  • Combining Trend-Following and Countertrend Indicators

    http://www.investopedia.com/articles/trading/10/trend-following-countertrend.asp
    ... Completion of this set of criteria suggests that a pullback ... would need to test out
    any method before using it ... What percentage of one's capital will be risked? ...

  • Swift Energy Moving Forward In Eagle Shale And Olmos

    http://stocks.investopedia.com/stock-analysis/2010/Swift-Energy-Moving-Forward-In-Eagle-Shale-And-Olmos-SWY0304.aspx
    ... legacy areas comprise a significant percentage of the ... ventures have become a popular
    method of developing ... initial production rate than the original completion. ...

  • Municipal Bond Tips For The Series 7 Exam

    http://www.investopedia.com/articles/professionaleducation/07/Series_7_municipal.asp
    ... at what price and by which method (in-whole ... for unsold bonds at the same percentage
    rate as ... syndicate according to their participation upon completion of the ...

Related Articles

Partner Links