homie

Dear all,

Thank you very much for yr kindly explain.

As Alldbest's example about the percentage of completion method, USD 100 (600 minus 500) is recognized as a loss immediately at the end of the first year? Or USD 200 (600 minus 400)?

I still get confuse about the time when we recognize a loss in completed contract method. Taking data of your example but apply to completed contract method. Suppose the project will be completed at the end of the second year, so when will loss of USD 100 (or USD 200) recognized? Can it be recognized at the end of the second year?

Please feel free to help me more detail.

All your comments are appreciated.

My Best Regards,

Thu Thuy