Facts > Company X agrees to construct a building for $9,000,000 Will take 3 years Expected total costs are $6,000,000 Scenario 1 End of year 1 Costs incurred in year 4,000,000 Expected costs to complete 4,000,000 End of year 2 2,000,000 1,000,000 Scenario 2 End of year 1 Costs incurred in year 4,000,000 Expected costs to complete 4,000,000 End of year 2 2,000,000 4,000,000 End of year 1 End of year 2 PCM CCM Q - Calculate Gross Profit/Loss for scenario 1 and 2 to fill the table using PCM and CCM methods. Long term contracts --Accounting ASPE Methods Percentage of completion method (PCM) recognize as significant acts occur Completed contract method (CCM) - if single act and/or cannot estimate % - recognize at end of contract