. PQR Ltd. is a software development company that follows the percentage-of-completion method for revenue recognition on long-term contracts. Explain the accounting treatment for long-term contracts under the percentage-of-completion method, including the recognition of revenue, recording of costs, and the impact on the company's financial statements at different stages of contract completion. PQR Ltd. entered into a long-term contract with a total contract price of $10,000,000, and the estimated costs to complete the contract are $6,000,000. Discuss the criteria that must be met for revenue recognition under this method.