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Úvod do procentní metody rozpoznávání zisku a tržeb

Úvod do procentní metody rozpoznávání zisku a tržeb. FIR 2013. Profit recognition in construction. KEY BALANCE SHEET ACCOUNTS (CASH BASIS ). KEY BALANCE SHEET ACCOUNTS USING THE BILLINGS METHOD

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Úvod do procentní metody rozpoznávání zisku a tržeb

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  1. Úvod do procentní metody rozpoznávání zisku a tržeb FIR 2013

  2. Profit recognition in construction

  3. KEY BALANCE SHEET ACCOUNTS (CASH BASIS)

  4. KEY BALANCE SHEET ACCOUNTS USING THE BILLINGS METHOD • Accountsreceivable, accountspayable, and inventoryaccounts are basic itemsreported in the balance sheetwhenusingtheaccrual-billingsmethod. In addition, anaccountisutilized to reflectwork in progressthat has not beenbilled. Such anaccountwouldembracepayrollspaid, materialsinstalled, and otherprojectcoststhathave not yet beenbilled to theclient. These expenses are considered to be a current asset and are summarized in theaccountcalledwork in progress.

  5. POC methodof profit and revenuesrecognition

  6. KEY ACCOUNTS USING THE POC METHOD In the case ofthepercentage-of-completionmethod, thekey balance sheetaccounts mustaccountfortheamountofunderbilling and overbilling. • Underbillingis a situation in whichthevalueearned (based on POC) exceedstheamountbilled, • generatinganassetOverbillingis a situation in whichthevalueearned (based on POC) islessthantheamountbilled, generating a liability. The POC methodprovidesforrecognitionofincome (on thebasisofearnedvalue) atthe end ofeachaccounting period. Revenues are recorded in theprojectbillings account and expenses in thework in progressaccount as workprogresses. At the end ofeachaccounting period, incomeflowsforallprojectsappear on the incomestatement and the balance sheetwhenthe POC methodisused. Theaccounts to reflectoverbillingorunderbilling on projects are updatedatthe end ofeachaccounting period.

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