How to recognize revenue in construction contracts - Percentage of completion-cost to cost method.

Percentage of Completion Method- Input Method or Cost to cost Method Explained with Example and Journal Entries.
How to recognize revenue as per IFRS 15 if the performance obligation is being satisfied over a period of time , Percentage of completion is measured and revenue is recognized as per percentage of completed. Measuring the percentage completed there are two methods used.
1. Input Method or Cost to Cost method
2. Output Method
In this Session the concept and application of input or cost to cost method is fully explained with help of example and Journal entries.
Links for notes
drive.google.c...

[@zubairsultan2433]

Great explanation thank for sharing

[@HamidAli-bg1xw]

Sir very very informative

[@eyadmasoud641]

Great and professional Explanation.

[@aaroacademy]

This was a really great and informative video. Thank you.

[@AccountingandQuickbooks]

Wellc0me

[@amitsuvarna5907]

Very informative 😊

[@AccountingandQuickbooks]

I am glad it helped you

[@rosh_unb3944]

Thanks for the video.. Do you pay VAT on the CIP value that is recognized as revenue?

[@AccountingandQuickbooks]

@rosh_unb3944 for VAT check the video. How do journal entries for construction contracts 👉 th-cam.com/video/R073fM5ykFo/w-d-xo.html vat is paid on tax invoice value even moblization advance received vat is charged that time and later on that amount is deducted and on net amount vat is charged for detail go through this video

[@maqbool-urrehman4760]

Dear end of each year do I need to close the billing A/C and ist day of next year i do the reversal of same entry?

[@AccountingandQuickbooks]

Pls elobrate.

[@maqbool-urrehman4760]

Deducting billing to date from cip means closing billing a/c in ist year?

[@AccountingandQuickbooks]

@@maqbool-urrehman4760 CIP Less Billing is your Contract or Liability . we are Deducting the CIP "TO DATE " and Billing "TO DATE" this means that effect is already there. @12:33
(P.S Reversal : I Assume you are confused with my other video " How to Do Accounting for Construction contracts" in that Video in have did one reverse entry because income was being doubled that was quite different scenario ) If you want to understand the difference of recognizing income in the video th-cam.com/video/UgQRczsFuG4/w-d-xo.html VS th-cam.com/video/6jNQiwHqXOE/w-d-xo.html & (Above)
--- th-cam.com/video/UgQRczsFuG4/w-d-xo.html ----> Work done / Certified =billed to customer (offcousre advance is something else ) ( in practical life mostly the contract are based on invoiced as work done but it can be otherwise )
----th-cam.com/video/6jNQiwHqXOE/w-d-xo.html & (Above).-------> Work Done > or < billed to customer
I hope it helped you
Dear @Maqbool if you watch those video's and keep the above point in mind and not skipping any part you will defiantly understand . wish you all the best

[@maqbool-urrehman4760]

I appreciate mate. Cip less billing will be done with or without double entry?

[@maqbool-urrehman4760]

Or what will be the double entry end of ist year for "cip less billing" ?