03 February 2011
The stage of completion used to determine revenue to be recognized in the financial statements is measured in an appropriate manner. For this purpose no special weight age should be given to a single factor; instead, all relevant factors should be taken into consideration; for example, the proportion that costs incurred to date bear to the estimated total costs of the contract, by surveys which measure work performed and completion of a physical proportion of the contract work.While recognizing the profit under this method, an appropriate allowance for future unforeseeable factors which may affect the ultimate quantum of profit is generally made on either a specific or a percentage basis
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