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hello and welcome to the session in which we would look at the percentage of completion method or also known as contract accounting now most revenues is recognized at delivery what does that mean it means you walk into a store you buy something they deliver the product to you you pay for it thats what revenue is or a company deliver product to another company basically inventory supplies and the revenue is recognized sometime revenues can be recognized before the final delivery what does that mean it means before you deliver all what youre supposed to deliver a company can recognize can record some of that revenue this is where the percentage of completion method comes into place its when we can recognize that revenue before the final delivery what could be some examples where you would use the percentage of completion method now bear in mind there are certain conditions to be able to use the percentage of completion method were going to talk about them on the next slide but think
