Construction
Contract Revenue Recognition — % of Completion
Recognizing revenue based on the percentage of the project physically completed at month-end.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Contract Revenue (P&L) | Revenue (+) | - | 180,000.00 |
| Work-in-Progress (WIP) | Asset (+) | 180,000.00 | - |
💡 Accountant's Note
Under IFRS 15, revenue on long-term contracts is recognized over time as performance obligations are satisfied. The percentage is calculated as (costs incurred to date / total estimated costs) × contract price.
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