Accounting for partly completed construction faces two risks. The first risk is a mismatch of reve nue

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Accounting for partly completed construction faces two risks. The first risk is a mismatch of reve¬ nue and expenses due to inaccurate estimates of the percentage of completion with actual expenses. The alternative risk is to account for contract progress as clearly defined milestones are reached, with the risk that expenses which have been incurred relate to the achievement of future stages of development. Which risk is more serious? Discuss.

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Financial Accounting And Reporting

ISBN: 9780273778172

16th Edition

Authors: Mr Barry Elliott, Jamie Elliott

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