TBEA will recognize revenue for the construction projects provided within a period of time based on the progress of the contract performance. The progress of the performance of the contract is determined by the input method during the contract period, and is determined based on the proportion of the completed contract cost actually incurred for the performance of the contract to the estimated total cost of the contract. The management estimates the estimated total revenue and estimated total cost of the project at the beginning of the project, and continuously evaluates and revises it during the execution of the contract. The determination of estimated total revenue, estimated total cost and performance progress involves important accounting estimates and judgments of the management, and has a significant impact on the amount and period of revenue recognition.
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