Construction

Contract Revenue Recognition — % of Completion

Recognizing revenue based on the percentage of the project physically completed at month-end.

Account NameTypeDebit ($)Credit ($)
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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