Introduction to Long-term contracts
Both for goods and for services a number of contracts can last for more than one accounting period. If the business giving the goods or service were to wait until the contract is totally fulfilled before recognising revenue, the income statement could provide a misleading notion of the wealth produced in the several accounting periods covered through the contract. This is a specific problem for businesses that undertake main long-term contracts, in which a single contract could demonstrate a large proportion of their total activities.
Construction contracts frequently expand over a long period of time. Assume that a customer enters into a contract along with a builder to have a new factory built which will take 3 years to complete. In such type of a situation, it is feasible to identify revenue before the factory is completed given that the building work can be split into a number of stages and each stage can be computed reliably. Let us presume that building the factory could be split into the following stages:
Stage 1 - clearing and levelling the land and putting in the foundations.
Stage 2 - building the walls.
Stage 3 - putting on the roof.
Stage 4 - putting in the windows and completing all the interior work.
Every stage can be rewarded a separate price with the total for all the stages being equivalent to the total contract price for the factory. The meaning of this is as each stage is finished; the builder can identify the price for that stage as revenue and bill the customer accordingly. This is given that the result of the contract as a whole can be estimated reliably.
Before recognising revenue if the builder were to wait until the factory was completed, the income statement should covering the final year of the contract would identify all of the revenue on the contract and the income statements for each previous year would recognise no revenue. This would provide a misleading impression, because it would not imitate the work done during each period.
Latest technology based Financial Accounting Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Long Term Contracts homework help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Long Term Contracts, project ideas and tutorials. We provide email based Long Term Contracts homework help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Long Term Contracts. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Financial Accounting homework help and assignment help services. They use their experience, as they have solved thousands of the financial accounting assignments, which may help you to solve your complex issues of Long Term Contracts. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
tutorsglobe.com eye assignment help-homework help by online receptor organs tutors
tutorsglobe.com effects of global warming assignment help-homework help by online global warming tutors
www.tutorsglobe.com offers answering questions to types of profit in monopoly, total revenue, marginal revenue, economics assignment help - homework help.
Detector is also termed as second detector or demodulator. It is employed among audio amplifier and IF amplifier. Crystal diode is employed in it.
Theory and lecture notes of Data Models all along with the key concepts of data models, Types of Data Models, Schemas versus Instances, Database Schema vs. Database State, DBMS Languages, DBMS Interfaces. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Data Models.
Polymer Chemistry I tutorial all along with the key concepts of PVC molecule, Properties of Macromolecules, complex molecules
tutorsglobe.com ramsay-raleighs method assignment help-homework help by online isolation of noble gases tutors
Theory and lecture notes of Correlation & Regression all along with the key concepts of Coefficient of Determination, Correlation Coefficient, Dependent Variable, Independent Variable and Regression Line. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Concept of Correlation & Regression.
Energy Metabolism tutorial all along with the key concepts of Enzymes and Energy, Regulating Metabolism, Do Enzymes Regulate Metabolic, Energy Transformations in Plants Photosynthesis and Flow of Energy
theory and lecture notes on dc sources, energy and power all along with the key concepts of ideal voltage source, ideal current source, energy expenditure, power dissipation. tutorsglobe offers homework help, assignment help and tutor’s assistance on dc sources, energy and power.
Ferromagnetism tutorial all along with the key concepts of Magnetic Field due to a Magnetized Material, Magnetic Intensity, Magnetic Circuits, Relationship between B and H
tutorsglobe.com different biological databases assignment help-homework help by online biological database tutors
tutorsglobe.com treatment of chlamydia assignment help-homework help by online chlamydia tutors
Theory and lecture notes of Fiscal Policy-Automatic Stabilizers all along with the key concepts of Rules vs. Authorities, Competence and Objectives, Political Business Cycle , Central Bank Independence. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Fiscal Policy-Automatic Stabilizers.
General Characteristics of Algae tutorial all along with the key concepts of Occurrence and Distribution of Algae, Morphology, Motility, Reproduction in Algae, Economic significance of Algae and Commercial Product from Algae
1964546
Questions Asked
3689
Tutors
1445139
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!