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Insert Circle from the Accounting Contract

Insert Circle from the Accounting Contract

Aug 6th, 2022

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How to Insert Circle from the Accounting Contract

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The video tutorial discusses accounting for construction contracts, emphasizing the recognition of revenues and expenses associated with long-term projects, such as the Wembley Stadium or the Sydney Opera House. The challenge arises from determining when to recognize profit, which could vary without a standard. The standard IAS 11 addresses this by stipulating that the accounting treatment depends on whether the stage of completion can be reliably measured. If measurable, the percentage of completion can be used to recognize revenue, as outlined in paragraph 22 of IAS 11. This approach helps avoid discrepancies in revenue reporting throughout the project's life.

Got questions?

Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

What is a contract in accounting?

An entitys obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer.

Can you back out of a contract after signing?

You usually cannot cancel a contract, but there are times when you can. You can cancel some contracts within certain time limits. Some contracts must tell you about your right to cancel, how to cancel them, and where to send the cancellation notice.

What is contract signing?

Contract signing means that the parties signing the document agree to the terms in it and their contractual duties and obligations.

What are the rules of signing a contract?

REQUIREMENTS FOR A CONTRACT In order for a contract to be valid, there must be an offer, an acceptance of the offer, an exchange between the parties of something of value, and an agreement to the terms.

How long is a contract signing?

There is no set time that a contract should take to sign. Signing time will often depend on the type of contract. A contract covering the sale of a house, for example, will take much longer to approve than a small loan agreement.

What does signing of contract mean?

Contract signing means that the parties signing the document agree to the terms in it and their contractual duties and obligations.

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