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in our last two videos we talked about how to use the percentage of completion method in the completed contract method for recognizing revenue when were talking about a long-term contract so were something like a construction contract were building a bridge that was the example we talked about and because its long term you have the option of either recognizing revenue throughout the periods in our example it was three years 2017 to 2019 you could recognize a little revenue in each period or the completed contract method you said look Im just gonna wait till the project is completed and recognize all the revenue in the final year when Ive completed the contract so we can easily think and say oh wow its easy to understand were recognizing a little bit in each period for a percentage of completion and then were were booking it all at the end for completed contract and were gonna have different profit different effect on net income in each period based on that but before we kin
