Completed contract method

Completed contract method,

Definition of Completed contract method:

  1. Revenue recognition method for a contract that is completed over more than one accounting period. It is employed specially where the total cost of performing the contract, and the amount of profit to be realized, are largely uncertain. In this method (as opposed to the percentage of completion method), the total contract revenue and the corresponding cost of performing the contract are recognized only in the accounting period in which the contract is completed.

Meaning of Completed contract method & Completed contract method Definition