Construction Accounting Q&A Part 3 - Recognition and measurement.

Confused over construction accounting Q&A Part III

Today we cover Q&A #3 on recognition and measurement in the construction accounting following our first sharing on the business cycle in last week.

We will run a series of our training note to our clients and new colleagues on contract accounting. Stay tune

Next is the tax treatment on the construction account.

#1.1 Progress bill method
= Actual work done to date/contract sum
… OR

#1.2 Cost method
= Actual work done to date/budgeted cost

#5.1 Recognition method used
#5.2 Amount due/(to) from customer