6. Why would a company want to recognize revenues over time rather than at a point in time (the time of completion/delivery)? For example, Overtime Co. has a $10 million contract that it commences on September 1, 2021 and completes on April 30, 2022. Progress on the contract is uniform over the 8-month period. What are the financial statement implications of recognizing revenues over time vs at a point-in-time (date of completion)? Assume that the companys year ends on December 31 and that the gross margin on the sale is 40%.

7. What condition(s) should be satisfied for a company to recognize revenue over time (rather than at a point in time)? .

8. What are the appropriate methods to recognize revenues over time?