Two senior accounting students were discussing the timing of revenue recognition for long-term construction contracts based on the new accounting standard. The discussion focused on which method was most like the typical revenue recognition method of recognizing revenue at the point of product delivery. Jerry argued that recognizing revenue upon project completion was preferable because it was analogous to recognizing revenue at the point of delivery. Jake disagreed and supported recognizing revenue over time, stating that it was analogous to accruing revenue as a performance obligation was satisfied. John also pointed out that an advantage of recognizing revenue over time is that it provides information sooner to users.

Please help Jerry and Jake sort out the issues by discussing the arguments made by both students. research the FASB Accounting Standards Codification and please write an objective, summary facts, discussion a recommendation is one is needed