Since incorporation in 2018, Ning Construction Inc. has accounted for its income from long-term construction contracts using the completed-contract method because this method is allowed by the Canada Revenue Agency. The completed-contract method allowed Ning to postpone income taxes into the future. Because Ning wanted to expand and needed to obtain additional financing, early in 2020, the company changed from following ASPE to following IFRS. Due to this change, Ning adopted the percentage-of-completion basis for financial accounting purposes. The completed-contract method will continue to be used for tax filing purposes. The senior accountant has arrived at the following information for the only contract in process during the three fiscal years from 2018 to 2020. Ning had no other contracts since incorporation.

Year ended December 31, 2020 2019 2018 Completed-contract: Balance Contract Asset/Liability (excluding billings) $1,920,000 $1,462,000 $799,000 Revenue from long-term contracts O O O O O O Construction expenses Percentage-of-completion: Balance Contract Asset/Liability (excluding billings) 2,066,000 1,575,000 845,000 Revenue from long-term contracts 491,000 730,000 845,000 Construction expenses 458,000 663,000 799,000