TLDR: Construction contracts require specific accounting and disclosure rules, and can be accounted for using either the percentage of completion method or the completed contract method. 00:00 📊 Construction contracts can be accounted for using either the percentage of completion method, which recognizes revenues as work progresses, or the completed contract method, which recognizes revenues only when the contract is complete. 09:11 📊 Construction contracts require specific accounting and disclosure rules, including revenue recognition, cost incurred, and profit/loss recognition, as well as disclosure of advances and retentions. 17:25 📊 Construction contracts can be fixed-price or cost-plus, and may be considered onerous if costs exceed expected benefits, requiring a provision for future losses. 24:05 📊 To account for construction contracts, calculate the percentage of completion by dividing costs incurred by total contract cost, then recognize revenue and contract cost by multiplying the total contract price and cost by the percentage of completion. 33:13 📊 To determine the statement of financial position for a construction contract, calculate client's balance, work in progress, and accounts receivable after recognizing revenue and cost. 41:06 📊 Mijango Construction recognizes revenue on construction contracts using a cost-based percentage of completion method, requiring contracts to be at least 5% complete. 53:30 📊 To account for construction contracts, calculate revenue, gross profit/loss, and work in progress, and recognize assets and liabilities accordingly. 01:12:01 📚 Subscribe to the channel and consider joining online classes for accounting exam preparation, with contact information provided for questions and social media follow-up.
CPA Edwin, I thank you very much, for hinting to us various topics to specialize with for exams purpose, secondly for a very fruitfull, explained and excellent content. I understand everything you teach
TLDR: Construction contracts require specific accounting and disclosure rules, and can be accounted for using either the percentage of completion method or the completed contract method.
00:00 📊 Construction contracts can be accounted for using either the percentage of completion method, which recognizes revenues as work progresses, or the completed contract method, which recognizes revenues only when the contract is complete.
09:11 📊 Construction contracts require specific accounting and disclosure rules, including revenue recognition, cost incurred, and profit/loss recognition, as well as disclosure of advances and retentions.
17:25 📊 Construction contracts can be fixed-price or cost-plus, and may be considered onerous if costs exceed expected benefits, requiring a provision for future losses.
24:05 📊 To account for construction contracts, calculate the percentage of completion by dividing costs incurred by total contract cost, then recognize revenue and contract cost by multiplying the total contract price and cost by the percentage of completion.
33:13 📊 To determine the statement of financial position for a construction contract, calculate client's balance, work in progress, and accounts receivable after recognizing revenue and cost.
41:06 📊 Mijango Construction recognizes revenue on construction contracts using a cost-based percentage of completion method, requiring contracts to be at least 5% complete.
53:30 📊 To account for construction contracts, calculate revenue, gross profit/loss, and work in progress, and recognize assets and liabilities accordingly.
01:12:01 📚 Subscribe to the channel and consider joining online classes for accounting exam preparation, with contact information provided for questions and social media follow-up.
Dear Sir ,I'm pursuing CPA Rwanda but I really appreciate your teaching!🙏
Thanks for your exhaustive content.
Thank you,for more videos call 0728760546.
Thanks for your videos
Glad you like them!
CPA Edwin, I thank you very much, for hinting to us various topics to specialize with for exams purpose, secondly for a very fruitfull, explained and excellent content. I understand everything you teach
Thank you,Drop something for your lecturer-0728760546
Great discussion!
Thanks for the support sir.
Thank you for this🙏
Thank you Edwin
Very helpful
I like your videos
thanks for the support omwana ominto