Construction in Progress--A Different Approach.

Abstract This article focuses on completed contract methods used for solving accounting problems. The present status of construction in progress seem relatively stable. Most textbooks in accounting treat this topic at the intermediate level using two acceptable methods "completed-contract" or "percentage-of-completion.'' The costs incurred to date on any project are stored in a debit balance account labeled "Construction in Progress." An analogous situation can be found in the areas of depreciation accounting, overhead accounting, and depletion accounting in which, when an earlier discrepancy is found, people are offered the options of correcting and using a new rate (or amount) or letting the error stand and absorbing it by an error in the opposite direction over the remaining time.