What are the disadvantages of the percentage of completion method?

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Does the percentage completion method give an accurate profit and loss statement...
Posted by:
Mohammed Azimooddin Karajagi
27-November-2014

Construction Accounting Property Accounting

Question added by Abdullah Mahhaden, CFA, CPA , Assurance Manager , Grant Thornton
Date Posted: 2013/06/17

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1 Answers

by Ravi Chhantel , Assistant Finance Manager , Tiger Palace Resort

Construction contracts takes more than a year to complete.Therefore it is difficult to determine revenue and cost that needs to charged.

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