Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 18 - Revenue Recognition - Review and Practice - Questions - Page 1031: 22

Answer

This is recognized by estimating the percentage of completion of the project or engagement. For example, if we were constructing an apartment building, billing and revenue recognition can be based on the number of completed units.

Work Step by Step

The essence is to show fulfilment of the performance obligation and transfer of ownership as well as the risks and rewards of the engagement.
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