RECOGNITION OF CONTRACT REVENUES AND EXPENSES

Victoria Firescu

Annales Universitatis Apulensis Series Oeconomica, 2007, vol. 1, issue 9, 34

Abstract: When the outcome of a construction contract can be estimated reliably, contract revenue and contract costs associated with the construction contract should be recognized as revenue and expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date. The contract costs are recognized as an asset provided it is probable that they will be recovered. The outcome of a construction contract can only be estimated reliably when it is probable that the economic benefits associated with the contract will flow to the enterprise. There are two methods of calculating the profits on uncompleted used by contractors: Percentage of Completion Method and Completion Contract Method.

Keywords: contract revenues; contract costs; recognition. (search for similar items in EconPapers)
JEL-codes: G00 M41 (search for similar items in EconPapers)
Date: 2007
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://oeconomica.uab.ro/upload/lucrari/920071/34.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:alu:journl:v:1:y:2007:i:9:p:34

Access Statistics for this article

More articles in Annales Universitatis Apulensis Series Oeconomica from Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia
Bibliographic data for series maintained by Dan-Constantin Danuletiu ().