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in this video were going to talk about the percentage of completion method and accounting so when we think about recognizing revenue we normally think about a good or service thats being transferred or thats being performed right so a retailer sells our good to a customer or performs a service for a customer and youre going to recognize revenue but what about a long term contract for example lets say you were building a bridge and lets say it was going to take several years to build this bridge as the firm is building this bridge are they recognizing revenue throughout the project or are they waiting until the project is completely done and theyve completed the contract to recognize the revenue well as it turns out firms have either option and so when they wait till the completion of the contract we call that the completed contract method and when they recognize revenue throughout the project we call that the percentage of completion method in this video were going to talk abou
