Long-Term Construction Contract Revenue Recognition Simulator
Compare revenue recognition differences between the Percentage-of-Completion and Completed-Contract methods.
Contract Information Input
Year 1 Data
Year 2 Data
Year 3 Data
Year 4 Data
Annual Gross Profit/Loss Analysis
| Method | Year 1 | Year 2 | Year 3 | Year 4 | Total |
|---|
Analysis Summary
When a total loss is anticipated in Year 3, the Percentage-of-Completion method immediately recognizes the entire expected loss (-$200). In contrast, the Completed-Contract method recognizes the loss as it occurs. The cumulative profit for both methods is ultimately the same.