Costs

Real-Time Single Version of the Truth Revenue and Income Recognition of Capital Construction Projects Using the Percentage of Completion Method 

Many Real Estate Developers use the percentage of completion method to calculate the amount of revenue and therefore income that can be recognized by their businesses on long-term capital construction projects. The method is in accordance with the matching or accruals concept of accounting and ensures that the costs incurred Read more…

By Tony, ago

How Can Executives Identify Fraud Actions in Payments for Interim Progress Invoices on Capital Construction Projects

One of the key issues associated with the execution of capital construction projects is the delayed payment of interim progress invoices to contractors which results in cash flow hardships and eventually claims and disputes. Nevertheless, this issue of delayed payments can also be associated with fraud actions where those involved Read more…

By Tony, ago

Are You Using the Wrong Actual Cost (AC) Value for Earned Value Management (EVM) Reporting on Capital Construction Projects?

For those involved in capital construction projects whether those projects were Engineering-Procurement-Construction (EPC), Design-Build (DB), Design-Bid-Build (DBB), Build-Operate-Transfer (BOT), Public-Private Partnership (PPP), or any other project delivery method, determining the Actual Cost (AC) value to be used in calculating the Earned Value Management (EVM) key performance indicators are always a Read more…

By Tony, ago