Percentage of completion method: recognise contract revenue and costs by stage of completion for construction contracts. Contract revenue is recognised only when there is reasonable certainty of collection and includes the initial contract amount plus probable and reliably measurable variations, claims, incentives and retentions. Contract costs comprise directly related costs, attributable overheads, reimbursable costs and allocated borrowing costs; costs for future activity are recognised as contract work in progress. Revenue and costs are recognised by reference to the stage of completion using the percentage of completion method, determined by cost proportion, surveys or physical completion; advances and progress payments are not acceptable indicators.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Percentage of completion method: recognise contract revenue and costs by stage of completion for construction contracts.
Contract revenue is recognised only when there is reasonable certainty of collection and includes the initial contract amount plus probable and reliably measurable variations, claims, incentives and retentions. Contract costs comprise directly related costs, attributable overheads, reimbursable costs and allocated borrowing costs; costs for future activity are recognised as contract work in progress. Revenue and costs are recognised by reference to the stage of completion using the percentage of completion method, determined by cost proportion, surveys or physical completion; advances and progress payments are not acceptable indicators.
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