Question
Asked Aug 27, 2019

how long-term construction contract are accounted for and some of the issues that are faced for financial reporting purposes.

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Expert Answer

Step 1

Long-term construction contract is reported in financial statements is as follows:

 

  • At the end of each accounting period, the construction in progress asset and construction contract account balances are compared.

 

  • If the net amount of difference shows d...

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