Académique Documents
Professionnel Documents
Culture Documents
Cumulative
costs
+ cumulative
GP
BB CIP
Add:
Costs during the Year CIP > PB Current Asset
RGP CIP < PB Current Liability
Less: offsetting is allowed only on a per project
basis
RGL
EB CIP
BB PB
Add: Billings
EB PB
ENTRIES:
Construction in progress xx to record costs incurred
Cash or Accounts Payable
xx
Accounts Receivable xx to record progress billings
Progress Billings xx
Cash xx to record collections
Accounts Receivable
xx
Construction Expenses xx to recognize revenue, costs, and GP
LONG TERM CONSTRUCTION CONTRACTS – PFRS 15
Construction in Progress
xx
Revenue from Construction
xx
Progress Billings xx to close CIP and PB accounts
Construction in Progress
xx