A property developer constructing a project for a client at a specified price can recognise revenues and profits:

Question

Quizplus · Accepted Answer

In order to recognise revenues and profits, property developers typically use the percentage-of-completion method, which recognises revenue and profits based on the stage of completion of the project. This is because the developer has an obligation to complete the project and the revenue and profits are therefore tied to the progress of the project, rather than a specific point in time such as the point of sale or payment of the final instalment.

A Property Developer Constructing a Project for a Client at a Specified