Terry Company is unable to reliably estimate revenues and costs associated with its only long-term construction contract. Under IFRS, Terry Company must use the completed-contract method to account for this contract.

Question

Quizplus · Accepted Answer

According to IFRS, if the outcome of a long-term contract cannot be estimated reliably, then the percentage-of-completion method must be used instead of the completed-contract method.

Terry Company Is Unable to Reliably Estimate Revenues and Costs