Three alternative revenue recognition methods are available to long-term contractors when cash inflows are probable: percentage of

Question:

Three alternative revenue recognition methods are available to long-term contractors when cash inflows are probable: percentage of completion, completed contract, and cost recovery. Assuming that the contract price is known, discuss the appropriate method under U.S. and IFRS under two alternative scenarios:
(a) The proportion of work performed and the proportion of work remaining until completion can be reliably determined and
(b) No reliable basis exists for determining the total amount of work necessary to complete the project.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...