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    When Does GAAP Require the Completed Contract Method?

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    When does GAAP require that the completed contract method be used?

    © BrainMass Inc. brainmass.com June 3, 2020, 9:09 pm ad1c9bdddf
    https://brainmass.com/business/business-law/gaap-require-completed-contract-method-168032

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    GAAP requires that the completed contract method be used when uncertainty obscures the total costs the contractor will incur in carrying out the project and in situations when a firm has not found a specific buyer while construction progresses.

    FAS 154:
    "A common change in accounting principle for ...

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    .The solution provides an answer and explanation to the question "When does GAAP require that the completed contract method be used?"

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