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11106 |
Selection of method: U.S. GAAP
U.S. GAAP
ARB 45
asc 605-35-05-5
Two generally accepted methods
(1) percentage of completion method
(2) completed contract method
Selection of method
ARB 45-pr15
asc 605-35-25-57, 90
Percentage of completion method is preferable in the case of
(1)
completed contract method is preferable in the case of (2)
(1) when the costs and progress can be reasonably estimated
(2) when dependable estimates are not available
asc 605-35-25-67
If there is an assurance of no contract loss,
percentage of completion method on a zero profit
margin
is recommended over
the completed contract method
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International Accounting
Standards (IAS)