The percentage of completion method and completed contract method are two different accounting methods mainly used by construction companies and other firms that work on long-term projects. With the former, income and expenses are recorded gradually as various milestones of the ...
The article offers information on a court case regarding the usage of percentage-of-completion method in taxation by Koch Industries Inc. Koch deferred tax payment on the income for several years using the accounting method. The U.S. Internal Revenue Service (IRS) determined that Koch was not ...
Learn about the percentage of completion method, its benefits, and how to hedge against risks like overbilling and change orders.