Long-Term Construction Using The Percentage-Of-Completion Method: A Teaching Aid
- ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
- Dr.. Ken S. Brackney, Professor (Creator)
- Institution
- Appalachian State University (ASU )
- Web Site: https://library.appstate.edu/
Abstract: The percentage-of-completion method of accounting for long-term construction projects represents an important exception to the principle that revenue is not recognized until the associated performance obligation has been fully satisfied. This method remains relevant, despite the recent Accounting Standards Update (ASU) from the Financial Accounting Standards Board (FASB) that rewrites much of the existing guidance on revenue recognition. Our paper reviews the application of the percentage-of-completion method and presents an EXCEL spreadsheet that can be used by instructors to help teach the topic and by accounting students to help solidify some of the more difficult concepts.
Long-Term Construction Using The Percentage-Of-Completion Method: A Teaching Aid
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Created on 1/26/2022
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Additional Information
- Publication
- Brackney, K. and Witmer, P. (2017). Long-Term Construction Using The Percentage-Of-Completion Method: A Teaching Aid, Accounting Instructors' Report. (Fall): 1-8. NC Docks permission to re-print granted by author(s).
- Language: English
- Date: 2017
- Keywords
- percentage-of-completion method, long-term construction projects, accounting, revenue, Accounting Standards Update (ASU), Financial Accounting Standards Board (FASB), teaching aid