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In this video, the focus is on the percentage of completion method in accounting for recognizing revenue. Traditionally, revenue is recognized when a good or service is transferred. However, for long-term contracts, such as building a bridge over several years, firms can choose between two methods: the completed contract method, where revenue is recognized only upon project completion, and the percentage of completion method, which allows revenue recognition throughout the project’s duration. The video will explore these methods and their implications for revenue recognition in long-term contracts.