Comparison of revenue recognition for construction contracts
Response to the following problem:
ThyssenKrupp AG, headquartered in Germany, is one of the world's largest technology companies, with almost 160,000 employees worldwide and primary segments in steel, technology, and capital goods and services.
Required:
1. Access ThyssenKrupp's most recent annual report using the Internet. Find the footnote describing significant accounting policies. Indicate the methods that ThyssenKrupp uses to account for long-term construction contracts when they can and cannot make an accurate estimate of the income on a construction contract.
2. If ThyssenKrupp was a U.S. company, how would you expect its accounting for these contracts to differ?