Long Term Construction Contracts Flashcards
Transaction Price using expected value method
Sum of all scenarios multiplied by respective probabilities
Revenue under input method
Contract Price x % of Completion = Revenue to date - PY = Revenue, current year
Construction in Progress
Costs incurred to date + gross profit to date
Contract Asset (Liability)
CIP - Progress Billings
Contract costs (expense)
Estimated costs at completion x % of completion (output/provided)
Actual costs incurred during the year - contract costs (expense)
Prepaid (accrued) contract costs
Site labor costs
Contract cost
Cost of materials used in construction
Contract cost
Cost of materials not yet used in construction
Prepaid cost
Depreciation of construction equipment
Contract cost
Depreciation of idle equipment not used in any projects
Operating expense
Cost of design and technical assistance directly related to the project
Contract cost
Insurance Cost
Contract Cost (if related to construction)
Research and development costs for which reimbursement is not specified in the contract
Operating expense
General and administrative costs for which reimbursement is specified in the contract
Contract cost
Construction overhead
Contract cost
Site supervision costs
Contract cost
Advance payments to subcontractors (work not yet started)
Prepaid cost
Selling Costs
Operating expense
